Energy giant Shell SHEL-N is in talks with Saudi Arabia’s state-run Saudi Aramco to sell its Malaysian gas station business, the country’s second-largest network, four industry sources with knowledge of the discussions said. announced that an agreement could be reached. Worth up to $1 billion.

Shell declined to comment on the negotiations, but said Malaysia was an important country for it. Saudi Aramco also declined to comment.

London-based Shell wholly owns about 950 fuel stations in Southeast Asian countries, according to its website, with only Malaysia’s state-owned Petronas operating a larger network.

Negotiations could begin in late 2023 and a deal could be reached in the coming months, sources said. Two sources briefed on the matter said they expected the potential deal to be worth around 4 billion to 5 billion ringgit ($844 million to $1.06 billion).

In addition to fuel stations, Shell sells industrial lubricants, produces crude oil and natural gas offshore in Sarawak and Sabah, and is a joint venture partner in two liquefied natural gas (LNG) ventures.

The sale is part of CEO Wael Sawan’s efforts to focus the company on its most profitable businesses. Shell said it would consider selling 500 gas stations this year and next. The company is selling its refinery and petrochemical complex in Singapore.

Shell’s efforts to sell its fuel stations in Malaysia coincide with its move to sell its refinery on Singapore’s Bukom Island, which supplies the network, one of the people said.

Saudi Aramco does not have a fuel station in Malaysia, but it owns 50% of the 300,000 barrels per day (bpd) Pengerang refinery in Johor state in a joint venture with Petronas that sells fuel domestically and for export. ing.

Aramco operates gas stations in Saudi Arabia and other regions through joint ventures with French giant Total Energy and South Korea’s S-Oil.