KUALA LUMPUR: Shell said today that it is still "committed to the mobility business" in Malaysia despite a report claiming it is in talks with Saudi Aramco to sell its gas stations in the country.
Its terse reply sparks more questions than it answers. If the report is true, it could mean that it might shed its legacy gas station business in favour of the electric vehicle charging segment that it has been involved in in recent years.
Shell has partnered with Porsche to set up DC fast chargers at selected stations in Peninsula Malaysia. It might expand the charging infrastructure through additional partners and sites, and that would align with its insistence it will continue to be a part of the Malaysian mobility business, whether that be at retail or commercial fleet levels or both.
Another oil major BP is also involved in EV charging through its subsidiary BP Pulse. Despite headwinds in the global EV industry, it remains bullish on EV charging in the long term, citing it as one of its major growth engines.
Reuters reported on Monday, citing four industry sources aware of the discussions, that the talks to divest its gas stations began in late 2023 and a deal could be worth up to US$1 billion.
London-based Shell has about 950 fuel stations across Malaysia, according to its website, making it the second-biggest operator after state-owned Petronas.
Shell also sells industrial lubricants, extracts crude oil and natural gas offshore of Sarawak and Sabah states and is a partner in two liquefied natural gas (LNG) joint ventures in the country.
The reported sale is part of CEO Wael Sawan's efforts to focus on the most profitable parts of the company.
Shell has said it will look to divest 500 gas stations this year and next. It is also in the process of selling its Singapore refinery and petrochemical complex.
Saudi Aramco does not have fuel stations in Malaysia, although it owns 50% of the 300,000-barrel per day (bpd) Pengerang refinery in Johor in a joint venture with Petronas. — Reuters with additional reporting by Carsifu
