Shell to sell Pakistan unit to Saudi firm
Shell Pakistan on Wednesday said its parent company’s unit, Shell Petroleum Company, has signed a deal with Saudi-based Wafi Energy to sell domestic operations.
Shell Petroleum Company, the international arm of Shell , said the sale is expected to complete by the fourth quarter of 2024, subject to regulatory approvals.
In June, Shell Petroleum Company said it would exit Pakistan with the sale of its 77 per cent shareholding.
The move comes after Shell made several announcements about its global operations and after Shell Pakistan (SPL) suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee, and overdue receivables, and as the country faces a financial crisis and economic slowdown.
“… the Board of Directors of Shell Pakistan Limited (SPL), in a meeting of its board held on June 14, 2023, have been notified by SPCo of its intent to sell its shareholding in SPL,” SPL said in a notice to the Pakistan Stock Exchange.
“This announcement does not impact SPL’s current business operations, which continue,” the notice said.
Wafi Energy is a wholly-owned affiliate of Asyad Holding Group, a fuel retailer in Saudi Arabia.
Shell Pakistan’s operations include more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant and a 26pc shareholding in Pak-Arab Pipeline Company Limited.