Shell Considers Selling Fuel Stations to Saudi Aramco

News Desk2 weeks ago

Malaysia is significant to Shell, according to the firm. In a revised statement on Tuesday, it stated, “We remain committed to the mobility business in the country,” without providing further details.

On Monday, Saudi Aramco chose not to comment.
According to its website, London-based Shell fully owns about 950 gas stations throughout the nation of Southeast Asia; only Malaysia’s state-owned Petronas has a larger network.

According to one source, negotiations started in late 2023, and a deal might be signed in the upcoming months. A potential sale amount of 4 billion to 5 billion ringgit ($844 million to $1.06 billion) was estimated by two persons briefed on the subject.

Shell supplies industrial lubricants, produces natural gas and crude oil offshore of the states of Sarawak and Sabah, operates petrol stations, and is a joint venture participant in two LNG initiatives.

Read more:Govt Raises Petrol and Diesel Prices Amid Economic Challenges

CEO Wael Sawan is attempting to concentrate the company’s operations on the most lucrative ventures, which includes the sale. According to Shell, it plans to sell 500 gas stations this year and the following. It is now selling its petrochemical complex and refinery in Singapore.

According to one of the individuals, Shell’s efforts to sell its petrol stations in Malaysia align with its recent decision to sell its refinery located on Singapore’s Bukom Island, which supplies fuel to the network.

Although it owns 50% of the 300,000 barrels per day (bpd) Pengerang refinery in Johor—a joint venture with Petronas—Saudi Aramco does not operate gas stations in Malaysia. Petronas sells fuel both domestically and internationally.

Along with running gas stations in Saudi Arabia, Aramco has joint ventures to run gas stations internationally through TotalEnergies, a large French company, and S-Oil Corp., a South Korean company.

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