Tag: Shell Petroleum Company

  • Shell Pakistan’s domestic operations set for sale to Saudi company 

    Shell Pakistan’s domestic operations set for sale to Saudi company 

    On Wednesday, Shell Pakistan (SHEL.PSX) announced that its parent company’s subsidiary, Shell Petroleum Company, has entered into an agreement with Wafi Energy for the sale of its domestic operations. 

    The international branch of Shell (SHEL.L), known as Shell Petroleum Company, anticipates the completion of this sale by the fourth quarter of 2024, pending regulatory approvals. 

    Back in June, Shell Petroleum Company declared its intention to divest its 77 per cent ownership stake in Pakistan.  

    This decision follows a series of global operational updates by Shell and significant losses incurred by Shell Pakistan (SPL) in 2022.  

    These losses were primarily attributed to fluctuating exchange rates, the devaluation of the Pakistani rupee, delayed receivables, and the backdrop of a financial crisis and economic slowdown in the country. 

    According to Reuters, Wafi Energy, an entirely owned affiliate of Asyad Holding Group, a fuel retailer based in Saudi Arabia, is the acquiring party. 

    Shell Pakistan’s operations encompass more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant, and a 26 per cent ownership interest in Pak-Arab Pipeline Company Limited. 

  • PRL and Airlink in talks to buy stake in Shell Pakistan

    PRL and Airlink in talks to buy stake in Shell Pakistan

    Shell Petroleum Company has decided to exit Pakistan by selling its 77 per cent stake in the local business. This move follows Shell’s recent updates on its global operations and concerns about the economic difficulties in Pakistan.

    In a notice submitted to the Pakistan Stock Exchange (PSX), Next Capital Limited, the managing party representing the Acquirers, Pakistan Refinery Limited and Air Link Communication Limited, declared their intention to acquire a majority stake of 77.42 per cent in Shell Pakistan Limited.

    Next Capital stated, “We, Next Capital Limited, hereby submit a Public Announcement of Intention by Pakistan Refinery Limited and Air Link Communication Limited (collectively referred to as the “Acquirers”) to acquire 77.42 per cent shares and control of Shell Pakistan Limited,” reflecting their involvement in the transaction.

    Speaking to Reuters, Airlink CEO Muzzaffar Hayat Piracha confirmed that the acquisition is a joint venture between Pakistan Refinery Limited and Airlink. However, the specific details regarding the shareholding distribution between Airlink and Pakistan Refinery Limited will be disclosed at a later stage, as stated by Piracha.

    For Airlink, entering the petroleum business aligns with its strategic objective of diversification. Airlink, primarily known as a smartphone distributor, manufacturer, and retailer, views this expansion as a progressive step.

    Pakistan Refinery Limited (PRL), which operates as one of the five refineries in Pakistan and functions as a subsidiary of Pakistan State Oil Company Limited, did not provide an immediate response to the request for comment.

    Shell Pakistan faced financial setbacks in 2022 due to fluctuations in exchange rates, the devaluation of the Pakistani rupee, and unsettled receivables. These challenges were further compounded by the ongoing financial crisis and economic slowdown experienced by the country.