Egypt’s Cheiron Petroleum is in a consortium with Cairn Energy and Pharos Energy over a second round of bidding for Royal Dutch Shell’s onshore assets in Egypt, people familiar with the matter told Bloomberg.

The deal value may reach $1 billion, according to the sources. The people also said Egypt’s East Gas Company is among others that have been invited to join the next round of bidding.

There’s no certainty the discussions will result in a final deal, Bloomberg cited the people.

The amount buyers are willing to pay has been impacted by the recent rout in oil prices. Furthermore, Shell may not be able to achieve its initial price expectations.

Representatives for the consortium declined to comment to Bloomberg, while calls to Cheiron and East Gas offices in Cairo weren’t answered.

In 2019, Shell announced its plans to sell its onshore upstream assets in Egypt’s Western Desert.

This was for the purpose of focusing on expanding its Egyptian offshore gas exploration.

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