French energy giant TotalEnergies has signed an agreement to sell its 50% stake in Total PARCO Pakistan Limited (TPPL) to Gunvor Group, a leading global commodities trading company.
As per the company’s statement, the transaction reflects the “selective strategy” of TotalEnergies in marketing and services “focused on core geographies with growth and transitioning opportunities”.
It should be noted that TPPL is a 50/50 joint venture between Total Energies Marketing and Services and Pak-Arab Refinery Limited (PARCO) in Pakistan with a retail network of more than 800 service stations, fuel logistics, and lubricant activities.
TPPL’s storage infrastructure consists of 10 depots located in key locations i.e. Keamari (02), Shikarpur (01), Daulatpur (01), Mehmood Kot (01), Sahiwal (01), Machike (02), Rawalpindi (01), Taru Jabba (01) with a total storage capacity of 56,199 MT for gasoline, 47,238 MT of diesel, 5544 MT of excellium and 1,243 MT of SKO.
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“The new entity will continue its retail business under the existing ‘Total Parco’ brand, and its lubricants business under the ‘Total’ brand for five years in Pakistan, continuing to serve its customers,” read the statement, adding that the acquisition remains subject to authorization by the relevant authorities and related agreements.
Total Energies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. The company during the three months to March 2024, posted an adjusted net income of $5.1 billion.
Meanwhile, Gunvor is one of the world’s largest independent commodities trading houses by turnover, having strategic investments in industrial infrastructure — refineries, pipelines, storage and terminals — that complement its core trading activity.
The company is also a leading independent global trader of liquefied natural gas (LNG).
Earlier in March, Gunvor and Pakistan LNG Limited confirmed that they have now settled all outstanding legal proceedings on terms satisfactory to all concerned.
“The parties look forward to continuing to work together,” they said, however, the terms and details of the settlement remained confidential.
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