Shell: Malaysia Is Important, We Remain Committed

Shell's Malaysian retail arm responded with a brief statement regarding reports of possible sale talks with Saudi Aramco.

The Malaysian arm of global fuel retailing giants Shell issued a brief statement in response to reported talks with Saudi Aramco, possibly for the latter to fully acquire the former’s entire retail business here in Malaysia.

“Malaysia is important to Shell. We remain committed to the mobility business in the country,” read Shell’s statement issued via its website. Though brief, it does signal that perhaps the Dutch-rooted and -founded but now UK-based global oil and gas giant will still remain in Malaysia in some way or another.

Could we soon see familiar Shell stations in Malaysia (left) switch over and rebranded as Aramco stations (right)?

Earlier this week, an unnamed but well-placed source was quoted by international newswire Reuters about Shell possibly selling its Malaysian retail business to Saudi Aramco. Presently, Shell sits as the second largest fuel retailer in Malaysia with roughly 950 stations established.

Beyond petrol, diesel, and other related products (lubricants and car cleaners), Shell’s Malaysian arm has also endeavoured into the electric vehicle (EV) charging space locally under its Shell Recharge banner featuring AC and DC charging stations, all tied to the ParkEasy app – which it also owns.

Apart from petrol and diesel, Shell also retails other related products such as lubricants (right). It also recently ventured into the local EV charging space through its Shell Recharge banner (left) and the ParkEasy app - which it owns.

The same sources reportedly said this move in selling off its Malaysia-rooted downstream business aligns with the firm’s decision in selling its refinery located on neighbouring Singapore’s Bukom Island, It is worth noting that this facility supplies its Malaysian retail network mentioned.

Furthermore, the same report also indicates that the discussion of this sale has been on the tables since late 2023. Though said talks are still developing, the same report alleges that an agreement on terms of the sale could be reached soon between both oil and gas firms.