Shell Oil Pakistan (Company)

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Article Upload Date: Thu 20 Jun 2019

   

Shell Pakistan Limited (SPL) is a subsidiary of Royal Dutch Shell Plc and has been in South Asia for over 100 years. Shell’s flagship business in Pakistan is the downstream retail marketing company, Shell Pakistan Limited, which has interests in downstream businesses including retail, lubricants and aviation.Shell Pakistan has a primary listing on Karachi Stock Exchange. It is also listed on Lahore and Islamabad Stock Exchange.[1] Shell Oil Pakistan

Title Description
Details
Type: Oil, Gas, Chemical Company
Board of Directors: Omar Y Sheikh (Chairman), Rafi H Basheer, Farrokh K Captain, Chong Keng Cheen, Imran R Ibrahim, Nasser N S Jaffer, Zaffar A Khan, Michael Noll, Haroon Rashid, Badaruddin F Vellani
Management: Omar Y Sheikh
Segments: Gas and Power, Oil Products, Chemicals, and Other
Acquired: Royal Dutch Petroleum Company December 21, 2005
Retail Stations: 850
Shell Stations in Cities: 330
Profits: 2010/2011 Rs. 906 million
In Urdu: شیل آئل پاکستان
Traded As: LSE: RDSA, RDSB Euronext: RDSA, RDSB NYSE: RDS.A, RDS.B
Industry: Oil and gas
Founded: Royal Dutch Petroleum (1890) "Shell" Transport and Trading (1897)
Headquarter: Shell House, 6 Ch. Khaliquzzaman Road, Karachi-75530
Key People: Omar Y Sheikh (Chairman), Farooq Rehmatullah, Quentin D’Silva, Zaiviji Ismail bin Abdullah, Sarim Sheikh
Product: Turbine Oils, Slideways Oils, Hydraulic Fluid, Power Engine Oils, Compressor Oils, Electrical Oils, Greases, Bearing and Circulating Oils, Stationary Gas Engines Oil, Gear oils, Process Oils, Axle and Transmission Oils,
Revenue: Omar Y Sheikh (Chairman),
Profit: Shell Pakistan Limited Announces Rs. 1,061 Million Profit After Tax
Owner: Omar Y Sheikh
Number of employees: 400+ people directly and over 12,000 indirectly
Subsidiaries: Royal Dutch Shell


Shell launches first performance fuel V-Power in Pakistan

In a ceremony led by the Honorable Minister for Petroleum & Natural Resources Shahid Khaqan Abbasi and accompanied by Jam Kamal Khan Minister of State for Petroleum, Shell unveiled its new global fuel offering Shell V-Power in Pakistan. [2] Fuel V-Power in Pakistan 

History

As of December 21, 2005, Shell Petroleum N.V. acquired Royal Dutch Petroleum Company in an internal restructuring. Royal Dutch Petroleum Company engages in the exploration and production of crude oil and natural gas worldwide. It operates in five segments: Exploration and Production, Gas and Power, Oil Products, Chemicals, and Other Industry & Corporate. The Exploration and Production segment builds and operates the infrastructure needed to deliver hydrocarbons to market. The Gas and Power segment liquefies and transports natural gas; develops gas markets and infrastructure, including gas-fired power plants; and markets and trades natural gas and electricity. This segment also converts natural gas to liquids to provide clean fuels. The Oil Products segment markets transportation fuels; lubricants; and specialty products, such as bitumen and liquefied petroleum gas, as well as refines, supplies, trades, and ships crude oil and petroleum products for the automotive, aviation, and marine sectors worldwide.[3]  Royal Dutch Company 

Shell BusinessesStakeholders

Shell Pakistan – OP Marketing (Aviation and Commercial) Lubricants Retail Pakistan Refinery Limited. (PRL) Pak Arab Pipeline Co. (PAPCO)

Aviation

The Aviation business is an important and profitable part of Shell Pakistan Limited’s (SPL) portfolio. Shell's presence at five major airfields across Pakistan has enabled the company to be involved in supplying both domestic and foreign airline carriers, making Shell Aviation the second largest Jet fuel supplier in Pakistan with over 30% market share.

Shell Lubricants

SPL is the largest lubricant marketing company in Pakistan with over 20% share of the total lubricant market in the country. SPL’s lubricant business is the second most profitable within Shell’s Global Lubricant portfolio.The business is focused on sales of key Shell brands (Rimula, Helix & Advance) to high street traders and the transportation sector as well as heavy-duty brands to industrial customers and power sector customers.

Shell Retail

SPL is the second-largest oil marketing company (OMC) and the largest private OMC in Pakistan with a 25% share of the white-oils market. The Retail business comprises over 800 retail outlets.

Pakistan Refinery Limited

Pakistan Refinery Limited (PRL), located at Karachi, is the third largest refinery in the country,with a refining capacity of 2.1 mn tons per annum. The refinery was set up in the 1960s, and Shell has a 26% equity interest in it. With the introduction of the deemed duty element in the oil products pricing mechanism in 2001, the refineries profitability has improved considerably. As 50% of its profits are mandated by the Government to be retained for upgrading/modernization, PRL is now embarking on major up-gradation projects including expansion and de-sulphurization.[4] Pakistan Refinary Limited 

Corporate Affairs

Management

Farooq Rehmatullah succeeded David M Weston in 2001, to become the first Pakistani national CEO of SPL. He retired in 2006. SPL Managing Directors Farooq Rehmatullah – April 2001-June 2006 Quentin D’Silva – May–August 2006 Zaiviji Ismail bin Abdullah – September 2006-July 2011 Sarim Sheikh – April 2011-July 2012 Omar Y Sheikh – June 2012 – present On June 17, 2012, Omar Y Sheikh became the new Country Chair/Managing Director for Shell Pakistan Limited. Omar has worked for Shell since 1995 in Retail, Commercial Lubricants and Downstream Strategy Portfolio roles. Omar also worked at Shell Internationals Ltd. In London with senior Downstream leadership on developing business strategy and implementing portfolio transactions. In his current role as MD, he is also General Manager Lubricants.

Board of Directors

Omar Y Sheikh (Chairman), Rafi H Basheer, Farrokh K Captain, Chong Keng Cheen, Imran R Ibrahim, Nasser N S Jaffer, Zaffar A Khan, Michael Noll, Haroon Rashid, Badaruddin F Vellani

Shell Pakistan in 2012

Shell Pakistan Limited (SPL) has more than 850 retail stations in more than 330 cities, having 20% market share and is the largest foreign investor in Pakistan’s oil marketing sector. Shell has been the leader in the lubricants sector since 2002, currently with more than 40% share of the organized sector. Shell’s Commercial Fuels business (including commercial transport) is a significant opportunity for growth. Its aviation business supplies fuels to six key airports across Pakistan. Shell has 30% interest in the Pakistan Refinery Limited (PRL) (average production: 40,000 bpd) located in Karachi and a 26% interest in US$480mn 780 km white oil pipelines. In FY2010-2011 the Company earned a profit after tax of Rs. 906 million and recorded 11% growth in net revenue and 3% increase in gross profits compared to previous year.[5]  Shell Global 

Government Receivables

One of SPL’s biggest challenges to doing business in Pakistan is Government receivables owed to it. These receivables are due on account of price differential claims, sales tax and Petroleum Development Levy. Currently, they stand at an all-time high of Rs 13,800 million (94.5 million GBP). Due to delays in the receipt of these receivables, Shell suffered approximately Rs 1,700 million in additional financing costs in 2011 to run day-to-day operations. Note: Given below are headings in Wikipedia article on Royal Dutch Shell.