Saudi Aramco considers bid for Shell's assets in Pakistan

Karachi: Saudi Aramco is reportedly exploring the possibility of making a bid for Shell Plc's assets in Pakistan, the media reported.

Citing sources familiar with the matter, Bloomberg reported that this potential deal could mark Saudi Arabia's first venture into the South Asian nation's energy sector.

Saudi Aramco, the world's largest oil company, is said to be carefully evaluating the Shell assets in Pakistan, with a particular focus on Shell Pakistan Ltd., which is listed on the Pakistan Stock Exchange (PSX) and has an approximate market value of $123 million, Express Tribune reported.

While the exact value of the potential transaction remains undisclosed, insiders suggest that the assets under consideration could be valued at around $200 million.

It is important to note that, at this stage, there is no certainty that these deliberations will result in a transaction.

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 intention to sell its shareholding in SPL, Express Tribune reported.

Shell's decision aligns with its broader corporate strategy under CEO Wael Sawan to increase returns to shareholders and divest from underperforming businesses.

Saudi Aramco is not the sole player eyeing these assets.

In July, Pakistan Refinery Limited (PRL) and Air Link Communication (AIRLINK) jointly expressed their intent to acquire a majority stake in and control of Shell Pakistan Limited.