‎“Shell” to sell its Pakistani unit to Saudi Wafi Energy Company

Shell Pakistan said on Wednesday that Shell Petroleum, a unit of its parent company Shell, has signed an agreement with Wafi Energy to sell its local operations.

According to Reuters, Shell Petroleum, the international arm of Shell, said that the sale is expected to be completed in the fourth quarter of 2024, depending on obtaining regulatory approvals.

In June, Shell Petroleum said it would withdraw from Pakistan by selling its 77% stake.

This move came after Shell made several announcements related to its global operations and after Shell Pakistan incurred losses in 2022 due to exchange rates, the depreciation of the Pakistani rupee and overdue receivables at a time when the country is facing a financial crisis and economic recession.

Wafi Energy is a wholly owned subsidiary of Asyad Holding Group, a fuel retail company in Saudi Arabia.

Shell Pakistan’s operations include more than 600 mobility sites, ten fuel stations, a lubricant blending plant as well as a 26% stake in the Pakistan Arab Pipeline Company.