By DayakDaily Team
KUCHING, May 7: Shell Malaysia has affirmed its commitment to Malaysia and its continued dedication to the country’s mobility business, in response to news that it is in discussion to sell its petrol station business to Saudi Aramco.
“Malaysia is important to Shell. We remain committed to the mobility business in the country,” Shell said in a brief statement on its retail fuel business.
This came following recent news reports regarding discussions surrounding the potential sale of its petrol station business in Malaysia to Saudi Aramco, an oil and gas conglomerate owned by Saudi Arabia.
According to reports from Reuters on May 6, industry sources suggested that this potential deal could range between RM4 billion and RM5 billion (equivalent to US$844 million and US$1.06 billion).
These discussions allegedly commenced late last year, and while no official agreement has been reached yet, negotiations are reportedly ongoing.
The report also mentioned that the sale is part of CEO Wael Sawan’s efforts to focus Shell’s operations on its most profitable businesses, with the company having reportedly said it was looking to divest 500 gas stations this year and in 2025.
Moreover, Shell is reportedly exploring the sale of its refinery and petrochemical facility in Singapore.
It was said that Shell and Saudi Aramco had declined to comment on the ongoing discussions when contacted.
Reuters reported that Saudi Aramco declined to comment when contacted. Shell also declined to comment on the purported talks, but said Malaysia was still “important” to the company.
According to various national dailies, Shell currently operates around 950 petrol stations in Malaysia, making it one of the prominent players in the market, second only to Petroliam Nasional Bhd (PETRONAS).
Beyond its retail presence, Shell is involved in various sectors in Malaysia, including the production of industrial lubricants and exploration of crude oil and natural gas reserves off the shores of Sabah and Sarawak.
Additionally, the company is a key partner in liquefied natural gas projects within the country, including Sarawak. — DayakDaily
