Saudi Aramco To Acquire Shell Retail Network In Malaysia?

Shell is reportedly in talks with Saudi government owned Saudi Aramco, with regards to selling its petrol station retail network in Malaysia. Four industry insiders were quoted by Reuters on this.

While neither business has publicly commented on the matter, the purchase involving Malaysia's second-largest fuel retail network might be worth between RM4 billion to RM5 billion.

Shell has approximately 950 petrol stations in Malaysia, trailing only behind Petronas, the state-owned oil company. The discussions, which began in late 2023, is said to be developing still but could come to an agreement soon.

The proposed sale is part of Shell's strategic repositioning under CEO Wael Sawan, who wants to streamline operations and concentrate on its most profitable activities. It includes plans to sell some 500 petrol stations this year and next, as well as a refinery and petrochemical factory in Singapore.

This step is consistent with the probable sale of its Malaysian stations, especially as Shell's Singapore refinery on Bukom Island is a key supplier to the network and has also been put up for sale.

However, there is no details thus far on EV charging stations network under the Shell Recharge branding operated via the ParkEasy app at locations besides petrol stations thanks to Shell’s part acquisition of ParkEasy back in 2022.

Saudi Aramco, a prominent global oil company, currently lacks a presence in Malaysia. However, it owns 50% of the Pengerang refinery in Johor, a joint venture with Petronas that supplies both the domestic market and exports.

Besides operating retail fuel stations in Saudi Arabia, Saudi Aramco has partnerships with TotalEnergies in France and S-Oil Corp in South Korea, broadening its retail fuels reach overseas.