Shell Petroleum plans to exit Pakistan. Shell Petroleum Company Limited is part of Royal Dutch Shell Plc, which is one of the world’s largest energy and petrochemical companies. They have been operating in Pakistan since 1948, when they acquired Burmah Oil Company’s assets in the country.
Shell Petroleum Company Limited — the parent company of Shell Pakistan (SPL) — has notified its intent to sell its shareholding in the local unit, through a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.
The oil firm, through its filing to the stock exchange, stated, “We hereby inform you that The Shell Petroleum Company Limited (SPCo) has notified the Board of Directors of Shell Pakistan Limited (SPL) in a meeting held on June 14, 2023, of its intent to sell its shareholding in SPL.”
SPL clarified that any sale will be subject to a targeted sales process, the execution of binding documentation and the receipt of applicable regulatory approvals.
The oil and gas company maintained that the development would have no impact on its current business operations, which will continue.
So Shell has decided to sell its shares and exit the Pakistani market. They have notified their board of directors and the stock exchange about their intention. They are actively seeking a buyer who shows interest in acquiring their business in Pakistan.They also need to get approval from the relevant authorities before they can finalize the deal.
SPL says that this announcement does not affect their current business operations, which will continue as usual.They affirm their continued commitment to providing safe and reliable services to their customers and partners.They also say that they are seeing strong interest from international buyers who want to invest in their business.
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.
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.
Shell’s departure could have negative consequences for Pakistan’s energy security and economy. It could create a gap in the supply and demand of petroleum products and lubricants.
Shell Petroleum plans to exit Pakistan. With 350+ employees, SPL markets petroleum products and compressed natural gas and blends and markets various kinds of lubricating oils.
Shell Pakistan Limited announced its financial performance for the first quarter of 2023 last month, highlighting the severe impact of 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.
Shell’s exit from Pakistan is a major decision that will have lasting implications for the country’s oil and gas sector. It is a reflection of the economic challenges and uncertainties that Pakistan is facing. It is also a reminder of the need for reforms and improvements in the business environment and regulatory framework of the country. It is a call for action and collaboration among all stakeholders to ensure the sustainability
