“Reuters”: Shell in talks to sell Malaysian gas stations to “Saudi Aramco”

Four knowledgeable sources in the energy sector said that Shell is in talks with Saudi Aramco to sell its gas stations in Malaysia, the second largest network of its kind in the country, in a deal that could be worth close to one billion dollars.

According to Reuters, Shell, according to its website, owns about 950 gas stations throughout the Southeast Asian country. No other company except Malaysia’s state-owned Petronas has a larger network.

One source explained that the talks began in late 2023, and an agreement is likely to be reached in the coming months.

Two informed sources estimated the value of the deal at about four to five billion ringgit ($844 million to $1.06 billion).

In addition to the gas station activity, Shell sells industrial lubricants and produces crude oil and natural gas off the coast of the Malaysian states of Sarawak and Sabah, and is also a partner in two companies working in two liquefied natural gas projects.

The potential sale comes as part of Shell CEO Wael Sawan’s efforts to focus the company’s operations on more profitable activities. The company stated that it is looking to sell 500 gas stations this year and next. It is in the process of selling its refinery and petrochemical complex in Singapore.

Shell’s efforts to sell its fuel stations in Malaysia are consistent with its move to sell its refinery on Bukom Island in Singapore, which supplies the network, one of the sources said.

Saudi Aramco does not have gas stations in Malaysia, despite its ownership of 50% of the Pengerang refinery located in Johor state, which has a capacity of 300,000 barrels per day, and is a joint venture with Petronas, which sells and exports fuel locally.

Aramco operates gas stations in Saudi Arabia and elsewhere through joint ventures with France’s Total Energies and South Korea’s S-Oil.