Saudi Aramco Explores Bid for Shell Plc’s Pakistan Assets in Historic Move

Shell Pakistan Limited (PSX: SHEL) has confirmed that it is not aware of any interest from Saudi Aramco regarding an acquisition. This clarification comes after media reports suggested that Saudi Aramco might be interested in acquiring Shell Pakistan Limited, which Shell announced it intends to exit in June. Shell aims to sell its 77.4 percent stake in SHEL, aligning with its strategy to divest less profitable businesses.

Saudi Aramco, the world’s largest oil company, is reportedly exploring the possibility of making a bid for Shell Plc’s assets in Pakistan. This potential deal would mark Saudi Arabia’s first venture into Pakistan’s energy sector. The focus is on Shell Pakistan Ltd., listed on the Pakistan Stock Exchange, with an estimated market value of $123 million. While the exact transaction value remains undisclosed, insiders suggest it could be around $200 million.

However, it’s important to note that no final decision has been made, and other potential buyers might emerge. Shell has not disclosed specific details about the potential sale but mentioned it would be subject to a targeted sales process and regulatory approvals.

This development follows Shell’s earlier announcement of its intention to sell its shareholding in Shell Pakistan Limited as part of its broader strategy to boost shareholder returns and divest from underperforming businesses.

Notably, Saudi Aramco isn’t the only interested party; in July, Pakistan Refinery Limited and Air Link Communication expressed their intent to acquire a majority stake in Shell Pakistan Limited.

This news coincides with Saudi Arabia’s exploration of investment opportunities in Pakistan, including the potential purchase of the federal government’s shares in the Reko Diq gold and copper mines. Saudi Arabia’s Public Investment Fund (PIF) is actively considering this opportunity, aligning with the country’s broader investment strategy in Pakistan’s energy sector.

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