Shell to Sell Pakistan Unit to Saudi Firm

(Reuters) — Shell Pakistan on Wednesday said its parent company's unit, Shell Petroleum Company, has signed a deal with Wafi Energy to sell the domestic operations.

Shell Petroleum Company, the international arm of Shell, said the sale is expected to be completed 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% 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.

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 26% shareholding in Pak-Arab Pipeline Company Limited.

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