Shell says it is in talks to sell its entire gas station network in Malaysia to Saudi Aramco – report
This is some big news. Shell is said to be in talks with Saudi Arabia’s state-owned Saudi Aramco to sell its gas station business in Malaysia, Reuters report. The news agency cited four industry employees familiar with the matter.
According to one of the sources, negotiations are expected to begin at the end of 2023 and a deal could be finalized in the coming months. Two other sources briefed on the matter put the deal at around 4 to 5 billion ringgit.
With about 950 stations across Malaysia, Shell has the second largest fuel retail network in the country after Petronas, which operates a larger network. The report pointed out that Shell declined to comment on the negotiations but said Malaysia was an important country for the company. Meanwhile, Saudi Aramco also refused to comment on this issue.
In addition to its fuel station network, Shell also sells industrial lubricants, produces crude oil and natural gas offshore Sarawak and Sabah, and is a joint venture partner in two liquefied natural gas (LNG) projects.
The report says that the sale is part of Shell CEO Wael Sawan’s efforts to focus the company’s operations on its most profitable businesses, which now appear to be retail Fuel is not one of them.
It is not known whether Shell recharge DC And AC electric vehicle charging network and Easy parkin there Shell Malaysia has a 50% stake inas part of a potential acquisition deal – there will be some movement on this, as it would be strange to retain the Shell brand at Aramco stations for this purpose.
According to news reports, the company has said that it will consider divesting 500 stations this year and next, and is in the process of selling its Singapore refinery and petrochemical complex. One of the sources said Reuters that the company’s efforts to sell its fuel station network in Malaysia are in line with its move to sell the Bukom Island refinery in Singapore, which supplies the network.
As for Saudi Aramco, it of course has no retail presence in Malaysia, but owns 50% of the 300,000 barrels per day Pengerang refinery in Johor in a joint venture with Petronas. Although Aramco operates gas stations in Saudi Arabia, it only began doing so in 2019. It also operates fuel stations elsewhere in a joint venture with French company TotalEnergies and S- Oil Corp of Korea.
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