Shell in talks to sell Malaysia fuel stations to Saudi Aramco: Report

SINGAPORE: Energy big Shell is in talks with Saudi Arabia’s verbalize-owned Saudi Aramco to sell its gas build commercial in Malaysia, the 2d-supreme such community within the country, four industry sources responsive to the discussions suggested Reuters, and a deal will likely be price as much as US$1 billion.

Shell declined to comment on the talks but acknowledged Malaysia is an necessary country to the company. Saudi Aramco additionally declined to comment.

London-primarily primarily based Shell wholly owns around 950 fuel stations across the Southeast Asian country, per its web page, with most effective Malaysia’s verbalize-owned Petronas running an even bigger community.

Talks began in behind 2023 and a deal might per chance per chance per chance also merely be finalised within the arrival months, one offer acknowledged. Two sources briefed on the topic assign a doable deal dimension at roughly 4 billion to 5 billion ringgit (US$844 million to US$1.06 billion).

To boot to to its fuel stations, Shell sells industrial lubricants, produces rude oil and pure gas offshore of Sarawak and Sabah states, and is a joint venture accomplice in two liquefied pure gas (LNG) ventures.

The sale is an component of CEO Wael Sawan’s efforts to focal level the company’s operations on essentially the most a hit businesses. Shell has acknowledged it would observe to divest 500 gas stations this year and subsequent. It is all by of selling its Singapore refinery and petrochemical complex.

Shell’s effort to sell its Malaysia fuel stations is per its switch to sell its refinery on Bukom Island in Singapore, which offers the community, one among the sources acknowledged.

Saudi Aramco does now not have fuel stations in Malaysia, even even supposing 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.

Aramco operates petrol stations in Saudi Arabia and additionally operates fuel stations elsewhere in joint ventures with French predominant TotalEnergies and South Korea’s S-Oil Corp.