Oil Giant Shell Bids Farewell to Pakistan

Posted by John Donovan 14 June 2023

In a heartwarming display of goodwill, the mighty oil giant Shell has decided to graciously exit its operations in Pakistan. The company’s subsidiary, Shell Petroleum Company, will be selling its 77% shareholding in the local business, Shell Pakistan.

The move comes after Shell, in its infinite wisdom, made numerous grand announcements about its global operations. Of course, Shell Pakistan (SPL) had the audacity to suffer losses in 2022, thanks to those pesky exchange rates and the devaluation of the Pakistani rupee. Let’s not forget the inconvenient overdue receivables, as the country wallows in financial crisis and economic slowdown. But fear not, for Shell is here to save the day!

“To support its intention to high-grade and simplify its portfolio,” proclaimed a spokesperson for Shell Pakistan, “Shell Petroleum Company Ltd… has initiated a sales process to sell its 77.42% shareholding in Shell Pakistan Ltd.” What a selfless act! They even included “all of SPL’s Downstream businesses and SPL’s 26% ownership of Pak-Arab Pipeline Company Ltd (PAPCO)” because why hold onto valuable assets when you can let them slip away?

Please rest assured, dear investors, that this glorious departure will have absolutely no impact on SPL’s current business operations, which will happily continue as if nothing happened. After all, why worry about such trivialities when Shell Petroleum Company has already notified its board of directors of this noble intention to sell their holding?

Shell, the epitome of benevolence, has entered into a process and wants us all to know that these decisions were not taken lightly. Their focus now is on pursuing a safe and smooth divestment, as if anyone would expect otherwise. Safety and reliability are clearly their top priorities, no matter what damage their operations may have caused in the past.

But wait, there’s more! As Shell makes its grand exit from Pakistan, we learn that some multinational companies are struggling to repatriate their dividends and make royalty payments. How unfortunate! We can only hope that the eventual buyer of SPL, whether an international or domestic company, will step up to the plate and alleviate these minor inconveniences. Who needs financial stability when you have multinational corporations playing the hero?

Mustafa Pasha, the chief investment officer at Lakson Investments, made an astute observation about this gracious exit. If the buyer happens to be a domestic company, they will have to jump through hoops to arrange the necessary funds because, naturally, Shell wants to repatriate the money. If, by some miracle, an international player swoops in, we can all rejoice in the fact that the impact of this transaction will be “net zero.” Isn’t that just splendid?

In the grand scheme of things, we must view Shell’s decision to abandon Pakistan through a holistic lens. It perfectly aligns with Shell’s global strategy, showcasing their unwavering commitment to maximizing profits and disregarding any trivial difficulties faced by a particular country. Who cares about supply-chain issues, regulatory environments, and foreign exchange outflow restrictions when Shell can simply cut its losses and move on?

Oh, and did we mention that Shell is also conducting a strategic review of energy and chemicals assets in Singapore? How exciting! It’s comforting to know that while they abandon one country, they’re already eyeing new opportunities elsewhere.

Let us all applaud Shell’s generosity, their impeccable timing, and their selfless pursuit of prosperity. Farewell, Pakistan! Shell has spoken, and the Country is surely a better place without their polluting presence.

Right of Reply: Shell is invited to point out for correction any factual inaccuracies and supply closing comments for publication as part of this article on an unedited basis.