French oil major TotalEnergies has announced an agreement to sell its 50% stake in Total PARCO Pakistan Limited to global commodities trader Gunvor Group, according to Reuters.
The joint venture between TotalEnergies and Pak-Arab Refinery Limited (PARCO) in Pakistan operates a retail network of over 800 service stations and is involved in fuel logistics and lubricants.
The transaction, subject to regulatory approvals, aligns with TotalEnergies’ strategy to focus on “core geographies with growth and transitioning opportunities.”
Despite the sale, the new entity will continue operating under the Total Parco brand for retail and the Total brand for lubricants in Pakistan for the next five years.
Adnan Sheikh, Assistant Vice President of Research at Pak Kuwait Investment Company, commented on the sale, noting concerns that Pakistan is no longer a core geography for TotalEnergies, even though the acquisition by another foreign entity mitigates a complete exit.
This move follows a similar exit by Shell Petroleum Company, which announced last year its decision to sell its 77% shareholding in Shell Pakistan.
The decision came amid financial losses due to exchange rate fluctuations, the devaluation of the Pakistani rupee, and overdue receivables, exacerbated by Pakistan’s economic slowdown and financial crisis.
Pakistan’s Federal Minister for Finance, Muhammad Aurangzeb, recently met with officials from PARCO and Gunvor Group, who reaffirmed their commitment to supporting the development of Pakistan’s energy sector.
