Shell Petroleum, a global energy company, has recently decided to sell its 77.42 percent stake in Shell Pakistan Limited and exit the Pakistani market. This move is part of Shell’s strategy to simplify its portfolio.
The Board of Directors of Shell Pakistan Limited (SPL) was informed by Shell Petroleum Company Limited (SPCo) of its plan to sell its shares in SPL, according to information shared with the Pakistan Stock Exchange. Targeted steps will be taken during the sale process, such as signing binding papers and securing required regulatory clearances.
Remembering that this statement won’t immediately affect SPL’s daily operations is crucial. For the sake of its clients and partners, SPL reaffirmed its dedication to upholding secure and dependable operations.
In a separate statement, a spokesperson for Shell Pakistan Limited confirmed that Shell Petroleum Company Limited, a subsidiary of Shell plc, intends to sell its stake in SPL to simplify Shell’s overall portfolio. Shell Pakistan has been operating in the country for 75 years and has established a significant presence in the retail sector and a strong lubricants business.
Similar to the earlier announcement, any potential sale of shares will undergo a targeted sales process involving the completion of binding documentation and obtaining the necessary regulatory approvals.
The spokesperson also mentioned that Shell has received significant interest from international buyers. Despite these developments, SPL remains fully committed to ensuring the delivery of safe and reliable operations.
This decision is believed to stem from the significant financial losses incurred by Shell Pakistan Limited in 2022, primarily due to adverse exchange rates, devaluation of the Pakistani rupee, and outstanding receivables. Pakistan’s prevailing financial crisis and economic slowdown may have also contributed to this strategic move.
