Amid Economic Crisis: Shell Announces to sell petroleum stake

By Omed Hajjana

Islamabad: Shell Petroleum Company Limited (SPCO) on Wednesday announced its Parent Shell Petroleum Company to sell its shareholding in the business.

Shell owns 77 percent of the local operations, which suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee, and overdue receivables.

SPL said in a notice to the Pakistan Stock Exchange that the Board of Directors of Shell Petroleum Company Limited (SPCO) had announced to sell its shareholding in Shell Pakistan Limited (SPL) in a board meeting held on June 14.

According to a notice, Shell Pakistan said that in accordance with Section 96 of the Securities Act 2015, and clause 5.6.1 (a) of the Pakistan Stock Exchange Regulations (PSX) Regulations, the company said it had been notified by the Shell Petroleum Company Limited (SPCO) of its intent to sell its shareholding in SPL. Shell Pakistan Turns into a Loss Making Entity

SPL said that any sale had been subject to a targeted sales process, the execution of binding documentation, and the receipt of applicable regulatory approvals.

They categorically said that this announcement does not impact SPL’s current business operations, which continue.

The company said that SPL remains committed to continuing to deliver safe and reliable operations for our customers and partners.

However, It is unclear how much of its stake SPCo is selling in Pakistan’s local business community.