Shell says it remains committed to mobility business in Malaysia

S-Oil

07/05/2024 13:29

May 7 (Reuters) - Global oil major Shell  SHEL.L  said
on Tuesday that it remains "committed to the mobility business"
in Malaysia, after a report that it was in talks with Saudi
Aramco  2223.SE  to sell its gas stations in the country.
    Reuters reported on Monday, citing four industry sources
aware of the discussions, that the talks began in late 2023 and
a deal could be worth up to $1 billion.
    London-based Shell has about 950 fuel stations across
Malaysia, according to its website, making it the second-biggest
operator after state-owned Petronas.
    Shell also sells industrial lubricants, extracts crude oil
and natural gas offshore of Sarawak and Sabah states and is a
partner in two liquefied natural gas (LNG) joint ventures in the
country. 
    The reported sale is part of CEO Wael Sawan's efforts to
focus on the most profitable parts of the company. 
    Shell has said it will look to divest 500 gas stations this
year and next. It is also in the process of selling its
Singapore refinery and petrochemical complex.
    Saudi Aramco does not have fuel stations in Malaysia,
although it owns 50% of the 300,000-barrel per day (bpd)
Pengerang refinery in Johor in a joint venture with Petronas.

 (Reporting by Deep Vakil in Bengaluru; Editing by Anil D'Silva
and Louise Heavens)
 ((DeepKaushik.Vakil@thomsonreuters.com;))