Shell to exit Pakistan through shares sale

Shell Petroleum Company Limited has initiated the sale of its holding in Shell Pakistan Limited (SPL), the company said in a note to Anadolu late on Wednesday.

Shell has commenced the sale process of its 77.42% stake in SPL, including all of SPL’s downstream businesses and SPL’s 26% share in the Pak-Arab Pipeline Company Ltd.

According to a Shell spokesperson, Shell has had a presence in Pakistan for 75 years and has a substantial retail footprint and a strong lubricant business.

The company said the decision has been taken to ‘simplify its portfolio’.

However, international media reports suggest that the drivers behind the sales decision are the depreciation of the Pakistani rupee and the economic problems that the country has been facing.

‘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 spokesperson confirmed.

The company said in a notification to the Pakistan Stock Exchange that the sales process will not affect ongoing operations.

• Shell Petroleum Company Limited has initiated the sale of its holding in Shell Pakistan Limited (SPL)