Pakistan Refinery, a subsidiary of the state oil company, is looking to acquire Shell’s Pakistan operations. Credit: AKlion via Shutterstock.

Pakistan Refinery (PRL) has announced its intention to purchase a controlling stake in global oil and gas company Shell’s Pakistan operations.

The company informed the Pakistan Stock Exchange (PSX) on Monday of its intention to purchase 77.4% of Shell Pakistan, as part of a joint bid alongside telecommunications company AirLink Communication. This amounts to Shell’s entire stake in the business. The joint bid is operated by Next Capital, a finance firm that notified the PSX about the acquisition attempt.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Muzzaffar Hayat Piracha, CEO of AirLink, told Reuters: “It’s a joint venture between PRL and Airlink. The details of shareholding between Airlink and PRL will be disclosed later.” Piracha added that the smartphone manufacturer’s goals of expanding across industries motivated its participation in the bid.

The acquisition will encompass all of Shell Pakistan’s downstream businesses and shareholdings, including the company’s 26% shareholding in the Pak-Arab Pipeline company (PAPCO). PAPCO is the operator of the White Oil onshore pipeline, a 786km oil pipeline that crosses Pakistan, connecting the port of Qasim in Sindh to PAPCO’s 100,000-barrel-per-day refinery in Punjab.

In June, Shell informed investors that it was set to completely divest from operations in Pakistan after a post-tax loss of $878,070 (Rs72m). The loss was driven by external factors including the decline of the value of the Pakistani Rupee, as well as general price volatility and environmental issues.

PRL is a subsidiary of the Pakistan State Oil Company. The state-owned oil company holds 63.56% of PRL. Shell also previously held a 28.57% stake in PRL, which it sold the majority of in 2018, before completely divesting in 2019. PRL currently holds 50% of the upcoming Karachi VIII cracking refinery, which, once complete in 2027, will be able to process 300 million barrels of crude oil per day.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.