French oil major TotalEnergies has announced the sale of its 50% stake in Total Parco Pakistan Limited (TPPL) to global commodities trader Gunvor Group. This joint venture between TotalEnergies and Pak-Arab Refinery Limited (Parco) operates over 800 service stations in Pakistan and is involved in fuel logistics and lubricants.
TotalEnergies stated that the transaction, pending regulatory approvals, aligns with its strategy to focus on “core geographies with growth and transitioning opportunities.” The new entity will continue operating under the Total Parco brand for retail and the Total brand for lubricants for the next five years.
Adnan Sheikh, Assistant Vice President of Research at Pak Kuwait Investment Company, commented on the sale, expressing concern that Pakistan is no longer considered a core geography for TotalEnergies. However, he noted it was reassuring that a foreign company is taking over rather than a complete exit.
This move follows Shell Petroleum Company’s decision last year to sell its 77% stake in Shell Pakistan due to financial losses from exchange rate fluctuations, the devaluation of the Pakistani rupee, and overdue receivables amidst the country’s economic challenges.
Finance Minister Muhammad Aurangzeb met with officials from Parco and Gunvor Group, including Parco’s Executive Vice President for Oceania and South Asia Mehmet Celepoglu and Gunvor Group CEO Torbjörn Törnqvist. They reaffirmed their commitment to developing Pakistan’s energy sector and discussed ongoing projects, energy reforms, and state-owned enterprise privatization efforts.
