TotalEnergies has reached an agreement to divest its 50% share in Total PARCO Pakistan Limited (TPPL) to Gunvor Group for an undisclosed sum.
TPPL is a 50/50 joint venture between TotalEnergies Marketing and Services and Pak-Arab Refinery (PARCO) in Pakistan.
It operates a retail network of more than 800 service stations, along with fuel logistics and lubricants operations.
For the French oil and gas company, the deal is part of its strategy to concentrate on core geographies.
“The transaction reflects the selective strategy of TotalEnergies in marketing & services focused on core geographies with growth and transitioning opportunities,” TotalEnergies said.
Under the terms of the agreement, TPPL will continue operating its retail services under the Total Parco brand and its lubricants business under the Total brand in Pakistan for the next five years.
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By GlobalDataThe deal is subject to regulatory approvals and other closing conditions.
In November 2023, Shell subsidiary Shell Petroleum Company agreed to sell its majority stake in its Pakistan unit to Wafi Energy.
In June of that year, Shell announced plans to leave Pakistan as part of its strategy to simplify operations.
Shell Pakistan’s activities, which suffered severe losses, comprise around 600 mobility stations, ten gasoline terminals and a lubricating oil mixing plant.
The Pakistani business, established in 1989, also has a 26% share in Pak-Arab Pipeline Company.
Subject to regulatory clearance, the divestiture is scheduled to be completed by the fourth quarter of 2024.
In June this year, TotalEnergies announced that it is exiting block 11B/12B and blocks 5/6/7, offshore South Africa.
The block 11B/12B encompasses the Brulpadda and Luiperd gas discoveries, which are said to be the largest in South Africa.
However, TotalEnergies deemed these discoveries too difficult and costly to develop and capitalise on economically.
