Pharos Energy issued a statement announcing the withdrawal from an alliance looking to acquire Shell’s land assets in Egypt due to the collapse in oil prices. The company said that “in light of the circumstances the market is currently experiencing, the board of directors decided that the acquisition of the assets in the Western desert would not be in the interest of shareholders, and therefore took the decision to withdraw from the alliance.” Pharos was part of an alliance with Sharon Petroleum and Kern Energy, seeking to acquire Shell assets in the Western Sahara.

Shell had announced earlier that it was close to completing the deal to sell its assets from the concession areas in the Western Desert, which represents 80 per cent of its operating areas in Egypt. Shell was looking to sell its assets for up to $1 billion, but those willing to buy will likely lower their offers in light of the oil price crash.

US oil prices fell to $-37.63 for May contracts, and $1 for June, due to lower consumption due to restrictive measures put in place to prevent the spread of coronavirus.