British energy giant seeks to acquire Shell Pakistan amid reports of Saudi interest

A Shell logo is pictured on a sign outside a Royal Dutch Shell petrol station in Gateshead, north east England on January 31, 2023. (AFP/File)
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Updated 17 October 2023
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British energy giant seeks to acquire Shell Pakistan amid reports of Saudi interest

  • Shell Petroleum announced its exit from Pakistan in June with sale of 77 percent shareholding in local business
  • Analysts say deal value, depending on assets involved, market, negotiation terms, would be in $200 million range

KARACHI: As a British energy giant seeks to acquire stakes in Shell Pakistan (SPL) in a potential $200 million deal, financial experts said on Tuesday the entry of credible international players was important for Pakistan’s corporate ecosystem. 

Shell Petroleum Company announced its exit from Pakistan in June with the sale of its 77 percent shareholding in the local business. The move came after Shell made several announcements about its global operations and after Shell Pakistan (SPL) suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee, and overdue receivables, and as the country faces a financial crisis and economic slowdown.

The offloading of shares also includes all of SPL’s downstream businesses and SPL’s 26 percent ownership of Pak-Arab Pipeline Company Ltd. (PAPCO). Shell Pakistan is a listed company with market capitalization of over Rs34.35 billion ($124.5 million). 

Since the announcement, State-owned Pakistan Refinery Limited and Air Link Communication, a local firm, have both said they were seeking to buy stakes in Shell Pakistan. Interest by Saudi buyers has also been widely reported.

However, SPL announced in a stock filing on Monday that it had received “firm intention” from Prax Overseas Holdings Limited to acquire control or 165,700,304 (up to 77.42 percent) voting shares. The acquirer, the listing said, was also looking to secure an extra 11.29 percent or 24.16 million shares through a public offer. 

Britain’s Prax Overseas Holdings, an investment company, is part of the Prax Group, headquartered in London with interests in exploration and production, refining, logistics, and integrated supply and optimization. 

Pakisani analysts called the Prax interest in Shell Pakistan “an interesting development” that would have positive implications for Pakistan’s energy sector and the overall economy. 

“Having another foreign company invest in the country can bring in new capital, technology, and expertise, potentially boosting the energy sector’s efficiency and competitiveness,” Ali Nawaz, CEO of brokerage firm Chase Securities, told Arab News.

Nawaz estimated that a possible deal value, depending on various factors such as the assets involved, market conditions, and negotiation terms, would in the range of $170 million to $200 million.

The SPL has recently also received interest from Saudi companies including oil giant Aramco and Wafi Energy, a leading fuel station firm, according to SPL officials privy to the issue, who did not want to be named.

“The parent company, SPC, is directly dealing with potential buyers and will set the scheduled for due diligence of the company,” an SPL official, requesting anonymity, told Arab News on Monday. 

Financial experts said it was important for Pakistan’s “corporate ecosystem” that the buyer was a credible operator who had the ability to maintain standards set by Shell. 

“This is why the news about potential interest by Aramco gained so much public interest. There is optimism and expectations in Pakistan about the prospects of foreign investment from Saudi Arabia,” Ali Fareed Khwaja, chairman of KTrade, a Pakistan and UK based brokerage firm, told Arab News. 

“Consequently, I think that the market would react more positively for a Middle Eastern group buying Shell rather than a British holding company. There are also some fears that the multinationals are pulling out and would be replaced by local investors.”

However, Nawas said it was essential to consider any buyer’s track record in the industry, commitment to sustainable practices, and the potential benefits they can bring to the local economy. 

“When comparing [UK company] with Saudi interests, it becomes a matter of geopolitical and economic considerations,” Nawaz added.

“Both Prax and Saudi interests could bring unique advantages, and the choice might hinge on the alignment of the buyer’s vision with Pakistan’s long-term goals and interests.”


Pakistan ‘deeply saddened’ as South Korea plane crash casualties surge to 120

Updated 17 sec ago
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Pakistan ‘deeply saddened’ as South Korea plane crash casualties surge to 120

  • Jeju Air flight, carrying 175 passengers from Bangkok, crashed after landing at Muan International Airport on Sunday morning
  • Investigators looking into bird strikes and weather conditions as possible reasons for plane crash, says Muan fire chief Lee Jung-hyun

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Sunday expressed condolences for the loss of lives after at least 120 people were killed when a passenger plane crashed upon landing in South Korea. 

The incident took place on Sunday morning as the Jeju Air flight, carrying 175 passengers and six crew from Thailand’s capital Bangkok, caught fire after skidding off a runway and crashing at the Muan International Airport. 

South Korea’s National Fire Agency said 120 people have been killed in the plane crash while two people have been rescued, both of them being crew members.

“Deeply saddened to learn about the tragic plane crash at Muan International Airport in Korea resulting in the loss of so many lives,” Sharif wrote on social media platform X.

 

“In this hour of grief, our thoughts and prayers are with the bereaved families and with the people and the Government of Republic of Korea,” he added. 

Muan fire chief Lee Jung-hyun told reporters that the fire was extinguished at 1:00 p.m. local time.

“Only the tail part retains a little bit of shape, and the rest of (the plane) looks almost impossible to recognize,” he said.

Authorities have switched from rescue to recovery operations and because of the force of the impact, are searching nearby areas for bodies possibly thrown from the plane, Lee added.

The two crew were being treated at hospitals with medium to severe injuries, said the head of the local public health center.

Investigators are looking into bird strikes and weather conditions as possible factors, Lee said. Yonhap cited airport authorities as saying a bird strike may have caused the landing gear to malfunction.

With inputs from Reuters


Sit-in protests in solidarity with violence-hit Kurram district enter third day in Karachi

Updated 15 min 12 sec ago
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Sit-in protests in solidarity with violence-hit Kurram district enter third day in Karachi

  • Demonstrators call protests in Karachi vital to draw attention to ‘overlooked’ crisis in Kurram
  • Traffic police urges citizens to avoid traveling unnecessarily in protest areas, exercise patience

KARACHI: Sit-in protests at various locations across Pakistan’s southern port city of Karachi continued for a third consecutive day today, Sunday, with demonstrators showing solidarity with the people in Kurram district, where violence and a lack of medical access have claimed over 130 lives in recent weeks.
Kurram, a northwestern district of around 600,000 people in Khyber Pakhtunkhwa province, has long been a hotspot for tribal and sectarian violence, with authorities struggling to maintain control.
The area’s situation has necessitated travel in convoys escorted by security personnel, yet it failed to prevent an attack on Nov. 21, when gunmen ambushed a convoy, killing 52 people. The attack sparked further violence and road closures, restricting access to medicine, food and fuel in the region.
A grand jirga, or council of political and tribal elders, has attempted to mediate between rival factions, as protests in Parachinar, the main city in Kurram, spread to Karachi on Friday where demonstrators held sit-in protests at 10 different locations in the city. 
“Protest demonstrations due to the Parachinar incident in Karachi city are ongoing,” Karachi Traffic Police said in an advisory, urging citizens to avoid traveling unnecessarily in certain locations across the metropolis. 
The protests have been called by the Majlis-e-Wahdatul Muslimeen (MWM), a Shia organization, with demonstrators blocking main thoroughfares, including Shahrah-e-Faisal, which connects the airport to the city’s Red Zone, home to sensitive government installations, and major hotels. 
Another area that has been choked is Numaish, a vital junction linking the city’s central district to its commercial hubs.
“Passengers are requested to exercise patience and refrain from going to locations where the demonstrations are taking place,” the traffic police said. 
MWM’s Karachi spokesperson, Syed Ahmad Naqvi, told Arab News on Saturday that the protests would continue as long as the Parachinar protests persist. 
“Large-scale protests in Karachi highlight the situation in Kurram, where many precious lives have been lost in recent weeks but have received no attention,” he said.
Meanwhile, Karachi Mayor Murtaza Wahab criticized demonstrators for disrupting daily life in the city. 
“If the aim of a protest is to inconvenience people, disrupt a city’s system, prevent ambulances and fire brigades from operating, or hinder police and administrative vehicles, then I believe this is inappropriate,” Wahab told Arab News on Saturday.


ICC shortlists Pakistani batter Saim Ayub for Emerging Cricketer of the Year award

Updated 56 min 12 sec ago
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ICC shortlists Pakistani batter Saim Ayub for Emerging Cricketer of the Year award

  • Saim Ayub scored two centuries in recently concluded ODI series against South Africa
  • He has been nominated alongside Kamindu Mendis, Shamar Joseph and Gus Atkinson

ISLAMABAD: The International Cricket Council (ICC) this week shortlisted Pakistan’s new batting sensation Saim Ayub for the Men’s Emerging Cricketer of the Year award for his match-winning performances against South Africa and Zimbabwe this month. 

Ayub has played six Test matches for Pakistan, scoring 323 runs at an average of 26.91 and scored three half-centuries. He has played nine ODIs, scoring 515 runs at an average of 64.37 with three centuries and a fifty already under his belt. 

The aggressive opening batter’s two centuries against South Africa in the recently concluded ODI series has earned him critical acclaim and comparisons with former Pakistan batting legend Saeed Anwar. 

“With nine categories in total, cricket fans around the world have the opportunity to cast their votes and help decide the winners of the ICC Awards 2024,” the ICC wrote on Saturday. 

Ayub has been nominated for the award with Sri Lanka’s Kamindu Mendis, West Indies’ bowler Shamar Joseph and England’s Gus Atkinson. 

Pakistan are currently playing the first of their two-Test match series against South Africa in Centurion. The hosts have handed the Proteas a 148-run target, as South Africa struggle at 27/3 to chase the target.


Pakistan minister says May 2023 protests ‘unforgivable’ despite talks with Imran Khan’s party

Updated 29 December 2024
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Pakistan minister says May 2023 protests ‘unforgivable’ despite talks with Imran Khan’s party

  • Pakistan’s government this week kicked off negotiations with Khan’s party to ease political tensions
  • May 9, 2023, protests saw people carrying flags of Khan’s party attacking government, military installations

ISLAMABAD: Pakistan’s Information Minister Ataullah Tarar has said that the violent protests of May 2023 led by former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party were “unforgivable,” despite the government’s ongoing negotiations with the PTI, state-run media reported this week. 

Tarar was referring to the violent countrywide protests of May 9, 2023, that saw people carrying PTI flags attack government and military installations. Khan’s party denies involvement in the protest, saying that the May 9 incident was a “false flag” operation designed to crush the party. 

Pakistan’s military this month sentenced 85 civilians to prison, which included Khan’s nephew, for sentences ranging from two years to 10, for their involvement in the protests. The decision was criticized by the European Union, the US and the UK, who raised questions over the transparency of the trials. 

Pakistan’s government this week opened talks with Khan’s PTI party to ease political tensions in the country. The PTI has demanded the release of political prisoners and the establishment of judicial commissions to investigate protests on May 9, 2023, and Nov. 26 this year. 

“He [Tarar] said incidents of violence like May 9 cannot be overlooked and anyone who commits acts of violence has to face the law,” Tarar told journalists at a press conference in Gujranwala, state broadcaster Radio Pakistan said. 

The minister said that there was “irrefutable evidence” against people sentenced by the military for the May 9 protests, categorically stating that the right to fair trial was ensured.

“The government wants to build on a momentum of hard-earned economic progress during the last few months and political stability is inevitable to this end,” Radio Pakistan said. 

Khan’s ouster in a parliamentary vote of no-confidence in 2022 has plunged the country into a long-term political crisis, particularly since the PTI founder was jailed in August last year on corruption and other charges and remains behind bars. 

His party and supporters regularly hold protests calling for his release, with many of the demonstrations turning violent, including one last month in which the government says four troops were killed and the PTI says 12 of its supporters died. 

The next session of talks between the government and the PTI is scheduled to be held on Jan. 2 in which it is expected that the PTI will present their demands in writing.


Gilgit-Baltistan defeats Chitral in ice hockey match at Shandur Lake

Updated 29 December 2024
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Gilgit-Baltistan defeats Chitral in ice hockey match at Shandur Lake

  • The match was part of Shandur Ice Sports Challenge held from December 24 to 28
  • The ice hockey match was tied 2-2 before Gilgit-Baltistan won on penalty shootouts

PESHAWAR: Shandur Lake in Pakistan’s northern region hosted an ice hockey match on Saturday, with Gilgit-Baltistan defeating Chitral 4-3 in a penalty shootout, the Khyber Pakhtunkhwa Tourism Authority said.
The match concluded the Shandur Ice Sports Challenge, organized by the tourism authority, which was held from December 24 to 28 and featured competitions in ice hockey and speed skating.
While ice hockey remains a developing sport in Pakistan, it has gained traction in the northern regions, where freezing temperatures and frozen lakes create natural rinks.
“A large number of locals participated in the ice hockey event,” said Tashfeen Haider, Director General of the tourism authority. “The match at Shandur Lake demonstrates the region’s potential to host winter sports.”
Shandur is widely known for its annual polo festival, a tradition dating back to 1936, when British officials set up a polo ground at the Shandur Pass, located at approximately 3,700 meters above sea level.
The festival attracts teams from Chitral and Gilgit-Baltistan and has become a significant cultural and sporting event.
The tourism authority informed that the ice hockey match at Shandur was tied 2-2 in regular time before being decided on penalty shootouts.
The match highlighted the growing interest in winter sports in Pakistan’s northern regions, which can help boost local tourism and community engagement.