By Staff Reporter
KARACHI: Shell Petroleum Company Limited (SPCo), the parent company of Shell Pakistan Limited (SPL), has agreed to sell its domestic operations to Saudi Arabia’s Wafi Energy LLC, a fuel retailer, for an undisclosed amount, the companies said on Wednesday.
The deal, which is expected to close by the fourth quarter of 2024, subject to regulatory approvals, will end Shell’s presence in Pakistan after more than a century and mark the exit of another major foreign oil company from the country.
SPL operates more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant, and a 26 percent stake in Pak-Arab Pipeline Company Limited, a joint venture with Pakistan State Oil.
SPCo informed SPL that it had signed a share purchase agreement with Wafi Energy on Oct. 31 to sell its entire 77.42 percent shareholding in SPL, the Pakistani company 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,” it said.
Wafi Energy is a wholly-owned affiliate of Asyad Holding Group, which operates more than 1,000 fuel stations in Saudi Arabia under the brand name “Wafi”.
SPL said in a statement that the sale was part of Shell’s strategy to high-grade its mobility network and focus on cleaner energy sources.
“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,” it said.
Shell announced in June that it would exit Pakistan as part of its global divestment plan. It had received expressions of interest from several potential buyers, including Pakistan Refinery Limited, Air Link Communication, Prax Overseas Holdings Limited, and Saudi Aramco.
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