Wafi Energy Pakistan to explore oil sector acquisitions
Wafi Energy Pakistan Limited has authorised management to evaluate potential investment and acquisition opportunities in the oil marketing sector.
Wafi Energy Pakistan Limited, formerly known as Shell Pakistan Limited, announced that its board has approved management to explore investment and acquisition opportunities in the country’s oil marketing sector, signaling its intent to expand operations under its new ownership. The disclosure was made in a notice to the Pakistan Stock Exchange (PSX) on Friday, following a board meeting held on August 21 at the company’s registered office.Wafi Reports 873M Profit in1QFY25
According to the official communication, the board granted “in-principle” authorisation to management to pursue possible investment or acquisition deals in the oil marketing industry and to assess their feasibility and viability. Industry observers note that such a move aligns with Wafi Energy’s regional growth ambitions after acquiring control of Shell Pakistan last year.
Wafi Energy Pakistan is a publicly listed entity incorporated in Pakistan and majority-owned by Wafi Energy Holding Limited, an Abu Dhabi-based company. Following the buyout, Wafi Energy became the exclusive brand licensee for Shell in Pakistan, allowing the continuation of the globally recognised Shell brand across its retail network while bringing new investment direction from the UAE.
The company’s transition was formalised in October 2024, when Wafi Energy Holding purchased a 77.42% stake from Shell Petroleum Company. It later increased its shareholding to 87.78% after acquiring an additional 10.36% from public investors. This transaction marked one of the most significant foreign takeovers in Pakistan’s oil marketing sector, amid growing investor interest from the Gulf in the country’s downstream energy assets.
Despite the change in ownership, Wafi has maintained continuity in its leadership, with Zubair Shaikh continuing as Chief Executive Officer. Market analysts view this stability as an important factor in managing operational and financial integration during the company’s transition.
Financially, the company has shown resilience despite market headwinds. In its half-year results for the period ending June 30, 2025, Wafi Energy Pakistan posted a profit after tax of Rs1.27 billion, reflecting a 3% year-on-year decline. Earnings per share stood at Rs5.97 compared with Rs6.16 in the same period of the previous year. The dip was attributed to volatile fuel margins and currency pressures affecting the oil marketing sector at large.
The oil marketing industry in Pakistan remains a highly competitive landscape, with more than 50 licensed OMCs operating nationwide. While state-owned Pakistan State Oil retains the largest market share, private players such as Attock Petroleum, Total Parco, and now Wafi Energy are actively competing for retail expansion and storage infrastructure. Industry experts suggest that Wafi’s exploration of acquisitions could be aimed at strengthening its supply chain, expanding its retail network, or diversifying into related businesses such as lubricants and fuel logistics.
The timing of the announcement comes as Pakistan continues to face macroeconomic challenges, including fluctuating international oil prices, foreign exchange shortages, and high inflation. Nevertheless, foreign investors have increasingly shown interest in the downstream energy market, given its steady demand base. Wafi Energy’s entry reflects confidence in Pakistan’s long-term fuel consumption growth, despite short-term headwinds.
This is not the first instance of consolidation in the sector. In earlier years, international majors such as Caltex and Elf exited Pakistan, while Total and Parco formed joint ventures to sustain operations. Analysts argue that Wafi Energy’s acquisition strategy could follow a similar path of partnerships or outright takeovers to strengthen its footprint in a market still dominated by fossil fuels despite gradual government pushes toward alternative energy.
For now, the board’s approval represents only the initial stage of exploring potential deals. The company has not disclosed specific targets or timelines, leaving investors to await further updates. However, the decision signals that Wafi intends to move beyond stabilisation under new ownership and towards an active growth phase in Pakistan’s oil marketing sector.
As the sector adapts to regulatory changes, shifting energy demand, and increasing competition, Wafi Energy Pakistan’s strategic direction will be closely watched. Its exploration of acquisitions could redefine the competitive balance in the downstream energy industry, especially if it leverages financial backing from its UAE parent to secure a stronger market position.
Wafi Energy Pakistan, by securing board approval to pursue new investments, has reaffirmed its long-term commitment to the country’s energy sector and its intention to play a larger role in shaping the future of Pakistan’s oil marketing industry.
