Wednesday, July 17, 2024
HomePakistanSaudi-Based Wafi Energy Signs Deal to Take Over Shell Pakistan

Saudi-Based Wafi Energy Signs Deal to Take Over Shell Pakistan

Shell Petroleum Company Limited, a subsidiary of Shell plc, has announced its intention to divest its 77.42% majority stake in Shell Pakistan Limited (SPL) to Wafi Energy LLC, a company based in Saudi Arabia. This strategic move aligns with Shell’s broader strategy to optimize its mobility network, a plan that was initially outlined during the Capital Markets Day in June 2023.

The completion of this sale is expected to occur in the fourth quarter of 2024, contingent on obtaining the requisite regulatory approvals. Despite the change in ownership, the Shell brand will continue to be available in Pakistan through brand licensing agreements. This ensures that customers will maintain access to Shell’s premium fuel and lubricant portfolio.

Shell Pakistan Limited (SPL) emphasizes its commitment to maintaining safe and reliable operations, with the goal of ensuring business continuity without disruptions. Wafi Energy LLC, a prominent fuel station company in Saudi Arabia, serves as the sole licensee of the Shell Retail Network in the country. Established in 2012, the company has experienced rapid growth within the retail gas station sector.

The decision to divest Shell’s stake in Shell Pakistan was first announced in June of the current year. As of the last annual report, Shell Petroleum Company Limited (SPCo) held a 77.42% interest in Shell Pakistan. This divestment is not expected to impact the ongoing business operations of Shell Pakistan, which will continue to function as usual. Notably, there has been significant interest from global buyers, indicating a positive outlook in the market for this transaction.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments