- Web Desk
- 5 Hours ago
Saudi company to acquire one of Pakistan’s most prominent petroleum companies
- Web Desk
- Nov 01, 2023
WEB DESK: Shell Pakistan announced on Wednesday that its parent company’s international unit, Shell Petroleum Company, has entered into an agreement with Wafi Energy to divest its domestic operations.
The sale, expected to be finalised by the fourth quarter of 2024 pending regulatory approvals, marks Shell Petroleum Company’s exit from Pakistan, involving the sale of its 77 per cent shareholding, as previously indicated in June.
This strategic move by Shell comes in the wake of a series of global operational changes.
Shell Pakistan (SPL) faced financial challenges in 2022 due to fluctuations in exchange rates, the devaluation of the Pakistani rupee, and outstanding receivables.
These challenges unfolded amidst Pakistan’s broader financial crisis and economic slowdown.
According to Reuters, Wafi Energy, a wholly-owned subsidiary of Asyad Holding Group, a prominent fuel retailer in Saudi Arabia, will be acquiring Shell Pakistan’s assets.
Shell Pakistan’s operations encompass over 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant, and a 26 per cent stake in Pak-Arab Pipeline Company Limited.
The completion of this transaction is contingent on regulatory clearances and is anticipated to reshape the energy landscape in the region.