Shell Pakistan said in a November 1 statement that its parent Shell Petroleum Co. Ltd. has agreed to offload its domestic operations to Saudi Arabia’s Wafi Energy, ending an era of more than a century of Shell’s presence in Pakistan.
As part of the deal, Shell Petroleum will sell a majority 77.42% stake in the local business, including all downstream operations and its stake in Pak-Arab Pipeline Co. Ltd.
“The Shell Petroleum Company Limited informed Shell Pakistan Limited that SPCo and Wafi Energy executed a share purchase agreement on 31 October, for the sale of SPCo’s entire shareholding in the company, comprising 165,700,304 shares and representing 77.42% of the issued share capital of the company,” Shell Pakistan Limited conveyed in a formal statement.
In a filing submitted with the Pakistan Stock Exchange (PSX), the company said, “M/s Shell Pakistan Limited (Target Company) has received firm intention from WAFI Energy LLC (Acquirer) to acquire control of 165,700,304 (up to 77.42%) voting shares of the target company.”
Wafi Energy, a retail gas station network, is the exclusive licensee of the Shell Retail Network (Gas Stations) in the Kingdom of Saudi Arabia. The Riyadh-based company was incorporated in September 2012 with a paid-up capital of SR3 million.
Wafi Energy confirmed that the company has successfully bought a majority stake in Shell Pakistan Limited, which had a presence in Pakistan for the last 75 years.
“With this strategic acquisition, Wafi Energy will be venturing into Pakistan which offers a huge potential growth towards building a global Shell branded energy portfolio,“ Wafi said in its statement.
Wafi Energy has hired Arif Habib Ltd. in Pakistan to oversee its acquisition proposal.
Shell brand to remain in Pakistan
The transaction is expected to complete by the fourth quarter in 2024, subject to regulatory approvals. Upon completion, the Shell brand will remain in Pakistan through brand licensing agreements, and customers will continue to have access to Shell’s premium fuel and lubricant portfolio. Following the announcement, SPL received expressions of interest from various potential buyers, including Pakistan Refinery Limited, Air Link Communication, Prax Overseas Holdings Limited, and Saudi Aramco.
Key Facts
Once completed, the multi-million-dollar deal will result in Shell’s complete withdrawal from Pakistan, affecting
- More than 600 mobility sites
- 10 fuel terminals
- A lubricant oil blending plant
- A 26% stake in the Pak-Arab Pipeline Co. Ltd.
