Shell in talks to sell MY fuel stations to Saudi Aramco

Energy giant Shell is reportedly in talks to sell its fuel stations in Malaysia to Saudi Arabia's state-owned Saudi Aramco. The deal, according to sources, could be worth up to US$1 billion. Talks reportedly began in late 2023.

According to a source, the deal may be finalised in the coming months. Meanwhile, two sources estimated that the deal could be worth roughly four to five billion ringgit (US$833 million to US$1.06 billion). 

“Malaysia is important to Shell. We remain committed to the mobility business in the country," said a Shell spokesperson when MARKETING-INTERACTIVE reached out. 

Currently, Shell has 950 fuel stations in Malaysia. It is also the second largest oil station network after Petroliam Nasional (Petronas), according to Reuters.  

Don't miss: 1,000 agencies pledge to refuse work from fossil fuel industry in Clean Creatives campaign 

Saudi Aramco does not have fuel stations in Malaysia. However, it reportedly owns 50% of the 300,000-barrel per day Pengerang refinery in Johor. 

Shell's move to sell its Malaysia fuel stations is consistent with its efforts to sell its refinery on Bukom Island in Singapore. In August last year, the energy giant reportedly hired investment bank Goldman Sachs to explore a potential deal, according to Reuters. 

The sale was reportedly part of new CEO Wael Sawan's plans to boost profitability, cut spending and remain committed to achieving net zero emissions by 2050. 

A+M has reached out to Shell Malaysia and Saudi Aramco for more information. 

Earlier this year, Shell Malaysia's advertising agency, Havas, was investigated by B Lab. B Lab is a nonprofit network which certifies businesses a score based on their social and environmental credentials. 

In a LinkedIn post, Clean Creatives revealed that it requested a review of the advertising and public relations company's B Corp status when it signed new contracts with Shell. The request was supported by 26 other communications and advertising agencies. 

According to Clean Creatives, B Lab Global said in an email that it had conducted an initial review and had determined that the allegations fall within the parameters of B Lab's public complaint process. 

In addition, B Lab Global reportedly investigated if there were possible breaches of the B Corp community core values and addressed additional allegations or issues that arose throughout the investigation process. 

Photo courtesy Shell Malaysia Instagram

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