Shell Petroleum intends to sell its shareholding in Pakistan unit

 

Shell Pakistan Limited (SPL) on Wednesday announced that its parent company, Shell Petroleum Company Limited, has notified its intent to sell its shareholding in the Pakistan unit.

Shell Pakistan, in a notice sent to the Pakistan Stock Exchange (PSX), said: “We hereby inform you that the Board of Directors of Shell Pakistan Limited (SPL), in a meeting of its Board, held on June 14, 2023, have been notified by The Shell Petroleum Company Limited (SPCo) of its intent to sell its shareholding in SPL."

The oil and gas company clarified that any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals.

SPL, however, said that the development would have no impact on its current business operations, which will continue.

“SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners,” it added.

It should be noted that the SPL is a subsidiary of Shell Petroleum Company Limited, United Kingdom, which is a subsidiary of Royal Dutch Shell Plc, one of the world’s largest energy and petrochemical companies.

A spokesperson of SPL said that it has been in the country for 75 years and has a substantial retail footprint and a strong lubricants business.

"Any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals. Shell is seeing strong interest from international buyers," the statement read.

With 350+ employees, SPL markets petroleum products and compressed natural gas, and also blends and markets various kinds of lubricating oils.

Last month, Shell Pakistan Limited announced its financial performance for the first quarter of 2023, which was severely impacted by the ongoing economic crisis in the country.

The loss came on the back of an unprecedented devaluation of the rupee, rising inflation and macroeconomic uncertainty.

Shortly after the announcement, at around 2:08pm, the share price of Shell Pakistan was hovering around Rs89.17, up by Rs6.22 with a volume of over four million.