Petroleum Giants Exit Pakistan, But New Investors Keep Pumps Running

Islamabad –  The recent exit of Shell Petroleum Limited (SPL) and TotalEnergies from Pakistan’s retail market has triggered debate among industry leaders and experts.

According to Business Recorder, experts are adamant that Pakistan’s energy retail has simply transitioned ownership to new international investors, so concerns about the industry shrinking are misplaced. 

New Market Players

This transition involves major international entities stepping in:

• Shell Pakistan (SPL): A 77% controlling stake in SPL, first announced for sale in June 2023, was successfully acquired by Wafi Energy LLC, a prominent Saudi firm.

• Total PARCO Pakistan: Global commodities trader Gunvor Group (Switzerland) acquired a 50% interest, which TotalEnergies divested in August 2024.

Shell’s decision to exit the Pakistani retail market was not kind to Shell Pakistan, which reported significant losses in 2022. These losses were due to various factors, including exchange rate fluctuations, devaluation of the Pakistani currency, overdue receivables, and difficulties in repatriating profits. 

Global Shift to Green Energy

Recent news shows that Shell’s exit from Pakistan is not an isolated event; it has also exited multiple markets worldwide, such as Nigeria and Mexico, as part of its transition from petroleum to green energy. He added that Shell Pakistan’s business was acquired by Wafi Energy (Saudi Arabia), which is expanding operations in the local market. 

Moreover, according to a press release issued by the Competition Commission of Pakistan (CCP), Switzerland’s Gunvor Group has acquired Total PARCO and will continue to operate and expand its retail operations in Pakistan. 

Insider Review: PakWheels Exclusive

Speaking to PakWheels, an industry expert stated that the ownership transition has gone largely unnoticed by the general public, as the Shell and Total PARCO branding remains unchanged, successfully preserving consumer demand and station footfall. 

He revealed that to ensure this smooth continuation and avoid market disruption, the new owners—Wafi Energy and Gunvor — are strategically paying sales royalties to their predecessors. 

While the regulatory body (OGRA) views Wafi Energy’s entry as a positive influx comparable to Aramco’s expansion, Malik cautioned that the simultaneous exit of two major multinationals remains a concerning signal for the broader economic environment, despite the commitments of the new investors.

Ultimately, the departures represent a strategic divestiture by European majors, promptly offset by the entry of significant investors from the Middle East and Switzerland, reinforcing the sector’s operational continuity and long-term viability.