Serica Energy has said it will not increase its offer for Pharos Energy after competing bidder Ratio Petroleum Energy raised its proposal, effectively drawing a line under Serica's participation in the bidding battle at its current price.

The UK-listed oil and gas producer said Monday that its offer remains at a total value of 32.6683 pence per Pharos share, comprising 28.6683 pence in cash and a 4-pence special dividend. Serica described those financial terms as final, subject to limited exceptions under UK takeover rules.

The decision follows an increased offer announced by Ratio on August 7. Serica also noted that Ratio said it had secured irrevocable undertakings covering about 41.76% of Pharos' issued share capital.

Serica had entered the contest for Pharos on July 26 with a recommended cash acquisition at 32.6683 pence per share. That proposal surpassed an earlier Ratio transaction under which eligible shareholders stood to receive up to 28 pence per share, including Pharos' previously declared final dividend.

Serica said its decision not to raise the price reflected its disciplined approach to mergers and acquisitions. The company added that it continues to evaluate other opportunities in the UK North Sea and elsewhere.

The contest centers on an upstream portfolio that would give an acquirer producing oil assets outside the North Sea. Pharos operates in Vietnam and Egypt, with first-half 2026 working-interest production of about 5,650 barrels of oil equivalent per day. Vietnam accounted for 4,583 boepd, while Egyptian production was 1,067 barrels per day.

In Vietnam, Pharos holds interests in the producing Te Giac Trang and Ca Ngu Vang fields in the Cuu Long Basin, alongside additional exploration acreage. Its Egyptian portfolio includes interests in the El Fayum and North Beni Suef concessions.

Pharos has recently been investing in drilling across both countries. The company reported in July that five wells in its six-well Vietnamese campaign had been completed and were producing, while drilling had also resumed in Egypt. Pharos generated $82 million in first-half revenue and held $45.2 million of cash at the end of June.

For Serica, acquiring Pharos would broaden a portfolio historically concentrated in the UK North Sea and provide exposure to producing assets in Southeast Asia and North Africa. However, Monday's declaration signals that Serica is unwilling to further increase the acquisition price simply to remain ahead in the bidding contest.

Serica can only revise its declared final offer in narrowly defined circumstances, including the emergence of another third-party bidder other than Ratio or with consent from the UK Takeover Panel in exceptional circumstances.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com

Hormuz Tensions Surge After Reports of Another Tanker Strike

Oil Prices Rise as Iran Hardens Hormuz Demands

Russian Oil Production Climbs Above 9 Million Bpd in July

Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you'll always know why the market is moving before everyone else.

You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions - and we'll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.