Shell Petroleum Plans to Exit Pakistan Market: Due to Economic Down

The parent company of Shell Pakistan (SPL), Shell Petroleum Company Limited, informed the Pakistan Stock Exchange (PSX) on Wednesday that it intended to sell its shares in the local business.

The oil company stated in its filing to the stock exchange: “We hereby inform you that The Shell Petroleum Company Limited (SPCo) has notified The Board of Directors of Shell Pakistan Limited (SPL) of its intent to sell its shareholding in SPL in a meeting of its Board, held on June 14, 2023.”

SPL made it clear that any sale would be contingent to the completion of a focused sales process, the signing of legally binding documents, and the acquisition of all necessary governmental permissions.

The oil and gas corporation insisted that the development would not have an effect on its ongoing business activities.

“SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners,” the statement continued.

It should be mentioned that Royal Dutch Shell Plc, one of the biggest oil and petrochemical businesses in the world, is a subsidiary of Shell Petroleum Company Limited, based in the United Kingdom.

According to an SPL spokeswoman, the company has been operating in the nation for 75 years and has a sizable retail base in addition to a robust lubricants business.

“Any sale will be contingent to the completion of a targeted sales process, the signing of legally binding documents, and the achievement of all necessary governmental clearances. International purchasers are showing a lot of interest in Shell, the statement said.

SPL, which employs more than 350 people, sells petroleum products, compressed natural gas, as well as blends and sells a variety of lubricating oils.

The prolonged economic crisis in the nation had a significant impact on Shell Pakistan Limited’s financial performance for the first quarter of 2023, which was disclosed last month.

The rupee’s historic devaluation, soaring inflation, and macroeconomic unpredictability all contributed to the loss.

The share price of Shell Pakistan was trading around Rs89.17 shortly after the announcement at around 2:08pm, up by Rs6.22 on a volume of more than four million.