Aramco explores possible bid for Shell’s Pakistan assets

Saudi Aramco, the world’s largest oil producer, is considering bidding for Shell Plc’s assets in Pakistan, Bloomberg reported, citing informed sources.

The potential acquisition will be the first for the Saudi oil giant in the South Asian nation.

Aramco is studying the Shell assets, including Karachi-listed Shell Pakistan Limited, which has a market value of about $123 million, sources told the news agency. 

The total assets in Pakistan could be valued at around $200 million, they added.

Shell Petroleum Company Limited, United Kingdom, a subsidiary of Shell Plc, in June announced plans to sell its 77.42 percent in Shell Pakistan.

Shell runs more than 600 retail outlets.

Aramco signed a memorandum of understanding in July with four Pakistani state-owned enterprises to set up a $10 billion oil refinery, the largest in the country.

The Pakistani government is in the advanced stages of negotiations with Aramco to execute the greenfield refinery project at the Gwadar Port. It aims to complete the initial paperwork before its tenure ends in two weeks, Dawn newspaper reported.

Saudi Arabia will invest up to $25 billion over two years primarily in Pakistan’s mining, agriculture and information technology sectors, Pakistan’s caretaker prime minister Anwaar-ul-Haq Kakar said in September.