AHMED MALIK

KARACHI: Shell Petroleum, global energy giant on Wednesday made the strategic decision to sell its entire 77.42 percent holding in Shell Pakistan Limited and decided to exit the Pakistan market to “simplifying Shell’s portfolio.”

“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,” material information sent to Pakistan Stock Exchange said.

Any sale will be subject to a targeted sale process, the execution of binding documentation and receipt of applicable regulatory approvals, it added.

“This announcement does not impact SPL’s business operations, which continue. The SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners,” SPL said.

In a separate announcement, the spokesperson of Shell Pakistan Limited said Shell Petroleum Company Limited, a subsidiary of Shell plc (Shell), has announced its intention to sell its holding in Shell Pakistan Limited (SPL), simplifying Shell’s portfolio.

Shell Pakistan 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 SPL remains committed to delivering safe, reliable operations, the spokesperson added.

It is believed that the move came after Shell Pakistan Limited suffered huge financial losses in 2022 due to exchange rates, devaluation of Pak rupee and overdue receivables. The financial crises and economic slowdown in Pakistan could be another reason behind this move.