French oil giant TotalEnergies has announced its decision to sell a 50 percent stake in Total Parco Pakistan Limited to global commodities trader Gunvor Group.
This transaction is pending regulatory approvals and marks a strategic move by TotalEnergies to focus on “core geographies with growth and transitioning opportunities,” according to a statement released on Tuesday.
TPPL, a joint venture between TotalEnergies and Pak-Arab Refinery Limited, operates a network of over 800 service stations in Pakistan and is involved in fuel logistics and lubricants.
Despite the sale, TPPL will continue to operate its retail business under the Total Parco brand and its lubricants segment under the Total brand for the next five years.
The decision to divest from TPPL reflects a broader trend of major oil companies reevaluating their presence in Pakistan. Last year, Shell Petroleum Company also exited Shell Pakistan, selling its 77 percent shareholding amid financial losses linked to exchange rate fluctuations, the devaluation of the Pakistani rupee, overdue receivables, and the country’s economic downturn.
In response to TotalEnergies’ move, Adnan Sheikh, assistant vice president of research at Pak Kuwait Investment Company, expressed concern over Pakistan’s diminished status as a core geography for Total.
“It’s reassuring that another foreign entity is taking over, but it’s troubling to see Pakistan’s importance wane,” he said.
Finance Minister Muhammad Aurangzeb recently met with representatives from Parco and Gunvor Group, who reaffirmed their commitment to Pakistan’s energy sector.
The meeting included Mehmet Celepoglu, Parco’s executive vice president for Oceania and South Asia, and Gunvor Group CEO Torbjörn Törnqvist. They discussed ongoing projects and the impact of energy reforms, state-owned enterprise (SOE) reforms, and privatization efforts in Pakistan.
