Business

Saudi-based Wafi Energy signs deal to take over Shell Pakistan

Published

1 year ago

Farwa

Sale is expected to be completed by fourth quarter of 2024.
Shell brand will remain in Pakistan via brand licensing agreements.
WAFI Energy is a fast-growing retail gas station network.

Shell Petroleum Company Limited, a subsidiary of Shell plc (Shell), has agreed to sell its 77.42% majority interest in Shell Pakistan Limited (SPL) to Saudi Arabia-based Wafi Energy LLC, said an official statement issued by the company on Wednesday.

“The sale is part of Shell’s strategy to high-grade its mobility network and was first announced on Capital Markets Day in June 2023,” the statement added.

The sale is expected to be completed by the fourth quarter of 2024, subject to regulatory approvals.

Upon completion, the Shell brand will remain in Pakistan through brand licensing agreements and customers will continue to have access to Shell’s premium fuel and lubricant portfolio, it said.

“SPL remains committed to delivering safe, reliable operations.”

WAFI Energy LLC, one of the leading fuel station companies in Saudi Arabia, is a fast-growing retail gas station network and the sole licensee of Shell Retail Network in Saudi Arabia.

The company was incorporated in 2012 with an authorised and paid-up capital of 3 million Saudi Riyal.

The development came after Shell Pakistan’s parent company, Shell Petroleum Company Limited (SPCo), notified its intent to sell its shareholding in the Pakistani entity in June this year.

SPCo had a 77.42% stake in Shell Pakistan as of December 31, 2022, according to the annual report for that year.

Shell Pakistan said at the time that the divestment plan would have no impact on its current business operations, which would continue as usual. The company also said that it was seeing strong interest from international buyers.

Shell Pakistan is one of the leading oil marketing companies in Pakistan, with a network of over 800 retail outlets across the country. The company reported a profit after tax of Rs6,450 million for the nine months ended September 30, 2023, compared to Rs2,864 million in the same period last year.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

9 hours ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

10 hours ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.