Competition for a foothold in Egypt’s oil sector has escalated after Genel Energy raised its cash offer for Capricorn Energy to $436 million, surpassing Norwegian rival DNO and regaining Capricorn’s board support. Under the revised terms, Capricorn shareholders will receive about $5.74 per share, comprising $4.75 in cash and a $0.99 special dividend. The offer represents a 10% premium to DNO’s latest proposal in September.

Capricorn’s board withdrew its recommendation for DNO’s offer and backed Genel’s revised proposal, saying it provides shareholders with “superior value, certainty and deliverability”, according to Reuters. Genel Energy is a  London‑listed independent oil and gas company with assets in Iraq, Oman and Somalia

The bidding war has centered on Capricorn’s Western Desert assets, which have made the company a target for energy firms seeking a presence in Egypt’s upstream sector.

Genel has also secured commitments from shareholders including Palliser Capital, Newtyn Management, Kite Lake Capital and Madison Avenue Partners, representing about 39% of Capricorn’s issued share capital. DNO declined to comment when asked whether it would raise its offer.

Capricorn’s Egyptian assets are operated through Badr El Din Petroleum Company (BAPETCO), a joint venture with the Egyptian General Petroleum Corporation (EGPC) and Cheiron.

Those assets averaged 20,024 barrels of oil equivalent per day in 2025 and generated $134 million in revenue and $81 million in net cash from Egyptian oil and gas operations.

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