Shell, the energy company, is currently in talks to sell its Malaysian fuel station business to Saudi Aramco. According to industry sources, if the deal succeeds, it could be worth up to USD 1 billion (approximately RM 4.7 billion). Shell currently operates around 950 fuel stations in Malaysia, making it the second-largest fuel station network in the country, just behind Petronas⁴ The negotiations between the two energy companies began as early as late 2023, and a decision is expected in the coming months. 

This move by Shell aligns with its CEO Wael Sawan's efforts to focus on its most profitable businesses, with fuel retail not being part of that focus. Shell has also mentioned plans to divest approximately 500 of its fuel stations between this year and next. Additionally, Shell's decision to sell its Malaysian fuel station business is in line with its move to sell its refinery on Bukom Island in Singapore, which supplies the network.

Saudi Aramco, on the other hand, does not currently own any fuel stations in Malaysia. However, it does own 50% of the Pengerang refinery in Johor, which sells fuel domestically and for export in a joint venture with Petronas. The state-owned energy company also operates petrol stations in multiple countries, including its home country, as well as in joint ventures with other companies like TotalEnergies and S-Oil Corp.

However, Shell has now clarified its position. The company remains “committed to the mobility business” in Malaysia. Despite the earlier reports, Shell intends to continue operating its fuel stations in the country.

Stay tuned for further updates!