Shell Petroleum Company Limited, a subsidiary of Shell plc, has revealed its intention to sell its majority stake of 77.42% in Shell Pakistan Limited (SPL) to Wafi Energy LLC, a Saudi Arabian-based company. This strategic decision is in line with Shell’s broader plan to optimize its mobility network, a strategy that was initially unveiled during the Capital Markets Day in June 2023.
The completion of this transaction is anticipated to take place in the fourth quarter of 2024, subject to the necessary regulatory approvals. Despite the change in ownership, the Shell brand will remain available in Pakistan through brand licensing agreements, ensuring that customers can continue to access Shell’s premium fuel and lubricant offerings.
Shell Pakistan Limited (SPL) is committed to maintaining safe and dependable operations, with a focus on ensuring uninterrupted business continuity. Wafi Energy LLC, a leading fuel station company in Saudi Arabia, holds the exclusive license for the Shell Retail Network in the country. Established in 2012, the company has seen rapid growth in the retail gas station sector.
The decision to divest Shell’s stake in Shell Pakistan was initially announced in June of the current year. As per the latest annual report, Shell Petroleum Company Limited (SPCo) held a 77.42% interest in Shell Pakistan. This divestment is not expected to disrupt the ongoing business operations of Shell Pakistan, which will continue to function as usual. It is worth noting that there has been substantial interest from global buyers, indicating a positive market outlook for this transaction.