Saudi Arabia’s WAFI Energy LLC is setting its sights on acquiring a controlling stake of up to 77.42% in Shell Pakistan Limited (SHEL). The prominent player in the fuel station business is looking to enter the South Asian market through Shell Pakistan Limited.

Shell broke the news in a recent notice to the Pakistan Stock Exchange (PSX). The letter revealed that WAFI Energy LLC has expressed a firm intention to acquire substantial voting shares in the company. This acquisition may potentially reshape the landscape of Shell’s operations in Pakistan.

WAFI Energy

WAFI Energy LLC has rapidly grown into a significant retail gas station network. Established in 2012 with a capital of 3 million Saudi Riyal, it holds the exclusive license for Shell’s Retail Network in gas stations across Saudi Arabia. This clearly indicates its influential position in the energy sector.

The move comes after Shell Petroleum Company Limited (SPCo) declared its intent to divest its shareholding in the Pakistani entity earlier this year. Since then, the Pakistani market has witnessed a series of potential acquirers expressing interest. This has reflected the strategic importance of Shell in the region.

Notably, this development follows the joint expression of interest by Pakistan Refinery Limited (PRL) and Air Link Communication (AIRLINK) to acquire a substantial stake in Shell Pakistan Limited. Bloomberg previously reported Saudi Aramco’s exploration of a potential bid for Shell Plc’s assets in Pakistan, marking the oil-rich nation’s potential entry into the South Asian market.

Shell Pakistan Limited

As per the latest financial results, Shell posted a robust profit after tax of Rs. 6,450 million for the nine months ending September 30, 2023. This figure reflects a substantial increase compared to the profit of Rs2,864 million in the corresponding period last year, showcasing the company’s financial resilience.

With multiple contenders vying for a majority stake in Shell Pakistan Limited, the coming months are poised to be a critical juncture for the energy industry in Pakistan. The dynamic landscape, fueled by international interest, hints at potential transformations in the sector’s structure and operations.