Friday, December 1, 2023

Shell Petroleum Company Plans to Exit Pakistan Company

Shell Pakistan Limited (SPL) has announced that it will no longer continue its aviation operations across Pakistan. The company released a notice to the Pakistan Stock Exchange (PSX) stating that its aviation-related activities are carried out at various airports, including Jinnah International Airport, Quetta International Airport, Begum Nusrat Bhutto Airport in Sukkur, and Nawabshah Airport.

Upon the expiration of the leases for these airports, the Pakistan Civil Aviation Authority (CAA) has invited bids for the operation of six airports, including the four currently operated by SPL, as well as Skardu International Airport and Gwadar International Airport. After careful consideration of legal, financial, and commercial factors, SPL has decided not to participate in the tender.

SPL has emphasized its commitment to ensuring a safe handover of operations to the CAA and relevant stakeholders at the airports it currently operates. The final date of exit will be determined through consultation with the CAA.

Despite discontinuing aviation operations, SPL reassured that it remains committed to its other businesses and operations in Pakistan, which will continue unaffected. During the first half of the month, SPL’s sales reached 100,000 tons due to the Eid holidays, although lower inter-provincial transportation activity and the monsoon season led to reduced sales of high-speed diesel (HSD). Additionally, Pakistan’s oil sales in July 2022 experienced a 26% decline compared to the previous month, marking the lowest sales volume since February 2021.

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