Energy giant Shell Plc’s (NYSE:SHEL) Pakistan unit is reportedly gearing up to transfer its domestic operations as it finalizes a sales agreement with Wafi Energy.
The decision is in line with Shell’s June declaration to exit its 77% stake in the South Asian nation, reported Reuters.
The transaction is expected to be completed by the fourth quarter of 2024.
The Pakistani affiliate has been wrestling with financial challenges aggravated by unfavorable currency shifts and pending payments.
All this is happening as Pakistan navigates through treacherous economic waters, grappling with a looming financial crunch and decelerating economic activity.
The buyer, Wafi Energy, operates as part of Asyad Holding Group, which is rooted in Saudi Arabia and specializes in the fuel retail sector.
The report noted Shell Pakistan’s operations include more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant, and a 26% stake in Pak-Arab Pipeline Company Limited.
Price Action: SHEL shares are trading higher by 0.50% at $65.46 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
