SINGAPORE: Energy large Shell is in talks with Saudi Arabia’s state- owned Saudi Aramco to sell its gas station business in Malaysia, the next- largest for network in the country, four industry sources conscious of the discussions told Reuters, and a deal could be for up to US$ 1 billion.
Shell said Malaysia is critical to the company, but she declined to comment on the discussions. Saudi Aramco even declined to comment.
London- based Shell absolutely owns around 950 gas stations across the South Eastern land, according to its website, with just Malaysia’s state- owned Petronas operating a bigger network.
Discussions began in late 2023 and a bargain may be finalised in the coming weeks, one source said. A prospective offer dimensions, according to two sources who were briefed on the subject, would range from US$ 4 billion to US$ 5 billion ( US$ 844 million to US$ 1.06 billion ).
In addition to its fuel stations, Shell sells industrial lubricants, produces crude oil and natural gas offshore of Sarawak and Sabah states, and is a joint venture partner in two liquefied natural gas ( LNG ) ventures.
The price is part of CEO Wael Sawan’s attempts to target the company’s functions on the most successful businesses. Shell has stated that it will seem to sell 500 gas facilities in the coming year and following. It is preparing to sell its chemical intricate and refinery in Singapore.
One of the options said that Shell’s strategy for selling its Malaysian gas stations is in line with its strategy to promote its network-supplying plant on Bukom Island in Singapore.
Saudi Aramco does not have fuel stations in Malaysia, although it owns 50 per cent of the 300, 000- barrel per day ( bpd ) Pengerang refinery in Johor in a joint venture with Petronas, which sells fuel domestically and for export.
In joint ventures with North Korean S-Oil Corp. and French multinational TotalEnergies, Aramco runs gas facilities in Saudi Arabia and abroad.