Shell in talks with Saudi Aramco to sell petrol stations in Malaysia

Shell owns about 950 petrol stations in Malaysia, with only Petronas operating a wider network in the country.

PETALING JAYA: Energy giant Shell is said to be in the midst of discussions to sell its fuel stations in Malaysia to the Saudi Arabia-owned oil and gas conglomerate Saudi Aramco, according to a report.

Quoting two industry sources, Reuters reported that the deal could be worth between RM4 billion and RM5 billion (between US$844 million and US$1.06 billion).

Another source said talks between Shell and Saudi Aramco began late last year and that an agreement could be finalised in the coming months, the report said.

This is said to be part of efforts to focus Shell’s operations on its most profitable businesses, with the company having reportedly said it was looking to divest 500 gas stations this year and in 2025.

Shell is also in the midst of selling its refinery and petrochemical facility in Singapore.

Reuters reported that Saudi Aramco declined to comment when contacted. Shell also declined to comment on the purported talks, but said Malaysia was still “important” to the company.

Shell owns about 950 petrol stations in Malaysia, with only Petroliam Nasional Bhd (Petronas) operating a wider network here.

It also sells industrial lubricants and produces crude oil and natural gas off Sabah and Sarawak’s shores.

The company is also a partner in a joint venture in liquefied natural gas projects.