Serica Energy’s board of directors have reached an agreement to acquire Pharos Energy for about £145.7 million ($194.2 million).

The deal marks a significant strategic shift for Serica, which has historically concentrated on extending the life of mature producing assets in the UK North Sea.

Pharos, which has developed oil and gas fields offshore southern Vietnam in partnership with PetroVietnam, had previously received a takeover offer from Ratio Oil & Gas.

Until now, Serica’s sole focus has been on life extension programs at mature production hubs in the UK North Sea.

The acquisition would give Serica immediate exposure to producing assets outside the UK while reducing its reliance on a single offshore region. The move also provides access to Southeast Asian markets where long-term energy demand growth is expected to support continued upstream investment.

 “The acquisition of Pharos is a compelling opportunity to deliver a first step in our long-standing strategic objective of adding to the diversification of our business through international expansion,” CEO Chris Cox said. “As we continue to invest in the UK North Sea, with a multi-well rapid return drilling program set to begin in 2027, this presents a complementary platform from which to grow in South East Asia, a region with increasing energy demand that benefits from a supportive environment for upstream investment.”

The combined group will have pro forma 2P reserves of 156.8 MMboe, 2C resources of 129.4 MMboe, and an anticipated 2026 exit production rate of about 70,000 boe/d.

Serica plans to continue Pharos’ current work on infill opportunities both offshore Vietnam and onshore Egypt and is seeking a farm-out partner for a drill-ready prospect in blocks 125 and 126 offshore eastern Vietnam.