In a blow for the South Asian country, which is suffering through its greatest economic crisis, Shell Plc has opted to leave Pakistan.
According to a statement, the oil giant has notified Shell Pakistan Ltd. of its intention to sell both its 26% ownership and 77.42% share in Pak-Arab Pipeline Co. International buyers are showing a lot of interest.
The transaction takes place as Shell implements a plan under its new CEO Wael Sawan to boost shareholder returns and close operations that aren’t profitable enough. Additionally, it is selling its interest in an Australian gas project and shutting down its European home energy retail business.
Continue reading: Shell Increases Dividend by 15% as It Returns to Oil and Gas
Pakistan’s economy is in chaos, and in the last year, the value of its currency has fallen by a third. As expectations of receiving a bailout from the International Monetary Fund dwindle, it is also facing increased chances of being the next developing market to fail, according to Moody’s Investors Service.
Over the last several years, a number of global corporations have left the country. Puma Energy, a fuel retailer, left the industry in 2021, and Trella, a startup in the transportation industry, opted to close its doors in April. According to the statement, Shell has operated in Pakistan for 75 years and is one of the country’s oldest international corporations. It has more than 600 gas stations.
The daily maximum 7.5% increase allowed Shell Pakistan to reach their best close in three months.
–With the help of Abhay Singh.