Shell Petroleum to exit Pakistan

Shell Petroleum Company, a subsidiary of global energy major Shell, on June 14 announced its intention to divest its stake in Shell Pakistan (SPL) as part of its portfolio simplification strategy. Shell Petroleum currently holds a slightly over 77% stake in SPL.

SPL has been operating in Pakistan for 75 years and has a significant presence in the retail sector, as well as a lubricants business. However, SPL faced financial challenges and reported losses in the previous year, primarily due to the financial and economic turmoil in Pakistan.

The divestment process for SPL will involve a targeted sales process, including the execution of binding documentation and obtaining the necessary regulatory approvals. Shell has indicated that there is substantial interest from international buyers for the acquisition of SPL.