Saudi Aramco Considers Acquisition of Shell’s Fuel Stations in Malaysia

Potential deal emerges as Saudi Aramco explores entry into Malaysian fuel retail sector.

Reports indicate that Saudi Aramco is in discussions with Shell regarding the possible purchase of Shell’s gas station business in Malaysia. Despite Saudi Aramco’s absence from the Malaysian fuel station market, it owns a 50% stake in the 300,000 barrels per day Pengerang refinery in Johor. According to industry sources familiar with the negotiations, Shell’s gas station network in Malaysia ranks as the second-largest in the country. Sources estimate the deal’s value to be as high as $1 billion, signaling significant potential for market expansion.

While Shell refrained from commenting on the ongoing talks, the company underscored the significance of its operations in Malaysia. Conversely, Saudi Aramco declined to provide a statement on the matter.

Noteworthy is Shell’s ownership of approximately 950 fuel stations across Malaysia, positioning it as a major player in the country’s fuel retail landscape. Only Malaysia’s state-owned Petronas operates a larger network, emphasizing the strategic significance of the potential acquisition for Saudi Aramco. This development marks a significant shift in Saudi Aramco’s business strategy as it explores opportunities to expand its presence in key international markets.