- Saudi Aramco, recognized as the world's largest oil company, is meticulously examining the assets owned by Shell in Pakistan, with a specific focus on Shell Pakistan Ltd., a company listed on the Pakistan Stock Exchange (PSX) and currently valued at approximately $123 million in the market. While the exact value of this prospective deal has not been disclosed, insiders suggest that the assets under consideration could be valued at approximately $200 million.
- A Bloomberg report underscores that other potential buyers may enter the competition for these assets. The sources cited, emphasize that these discussions are still in the early stages. Shell, on the other hand, has refrained from providing specific details about the potential sale. A representative, as quoted by Bloomberg, stated, "Any sale will be contingent upon a targeted sales process, the execution of binding documentation, and the receipt of the requisite regulatory approvals."
Why it matters
This development follows an earlier announcement made by Shell Pakistan Limited (SPL) in June of this year, where the parent company, Shell Petroleum Company Limited (SPCo), expressed its intent to divest its shareholding in SPL. Shell's decision aligns with its broader corporate strategy under CEO Wael Sawan to enhance returns to shareholders and divest from underperforming businesses.