Shell exits Pakistan, sells business to Saudi Wafi Energy

KARACHI: Shell Pakistan Limited (SPL) said on Wednesday, its parent company Shell Petroleum Company Limited (SPCo) had signed a deal to sell its domestic operations to Saudi Arabia’s Wafi Energy LLC for an undisclosed amount.

The sale, which is expected to be completed by the fourth quarter of 2024, subject to regulatory approvals, will end Shell’s presence in Pakistan after more than a century. The company’s operations include more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant and a 26 percent shareholding in the Pak-Arab Pipeline Company Limited.

“The Shell Petroleum Company Limited informed Shell Pakistan Limited that SPCo and Wafi Energy executed a share purchase agreement on 31 October, for the sale of SPCo’s entire shareholding in the company, comprising 165,700,304 shares and representing 77.42 percent of the issued share capital of the company,” the SPL said in a notice to the Pakistan Stock Exchange.

“Completion of the transaction will be subject to public offer by Wafi Energy upon receipt of regulatory approval, including clearance from Competition Commission of Pakistan, and the satisfaction of other closing formalities.”

Wafi Energy is a wholly-owned affiliate of Asyad Holding Group, a fuel retailer in Saudi Arabia.

The SPL in a statement said the sale is part of Shell’s strategy to high-grade its mobility network. “The sale is expected to be completed by Q4 2024, subject to regulatory approvals. Upon completion, the Shell brand will remain in Pakistan through brand licensing agreements and customers will continue to have access to Shell’s premium fuel and lubricant portfolio,” the company said.

Shell Petroleum Company in June announced that it would exit Pakistan as part of its global strategy to divest from low-margin markets and focus on cleaner energy sources.

Subsequently, the SPL had received expressions of interest from several potential buyers, including Pakistan Refinery Limited, Air Link Communication, Prax Overseas Holdings Limited and Saudi Aramco.