Professional Documents
Culture Documents
1.Objectives
The objective of shell Pakistan Ltd is to engage efficiently ,responsibly and profitably in the oil and
chemical businesses. Shell Pakistan Limited seeks a high standard of performance and aims to
maintain a long-term position in its competitive environment.
2.Responsibilities
Shell Pakistan Limited recognises five areas of responsibility.
To Shareholders
To Customers
To win and maintain customers by developing and providing products and services which offer value
in terms of price, quality, safety and environmental impact, which are supported by the requisite
technological ,environmental and commercial expertise.
To employees
To respect the human rights of its employees, to provide its employees with good and safe
conditions of work, and good and competitive terms and conditions of service, to promote the
development and best use of human talent and equal opportunity employment, and to encourage
the involvement of employees in the planning and the direction of its work, and in the application of
these principles within the company.
It is recognised that commercial success depends on the full commitment of all employees.
To seek mutually beneficial relationships with contractors , suppliers and in joint ventures and to
promote the application of these principles in so doing. The ability to promote these principles
effectively will be an important factor in the decision to enter into or remain in such relationships.
To society
To conduct business as a responsible corporate member of society , to observe the laws of Pakistan,
to express support for fundamental human rights in line with the legitimate role of business and to
give proper regard to health , safety and the environment consistent with its commitment to
contribute to sustainable development.
These five areas of responsibility are seen an inseparable. Therefore, it is the duty of management
continuously to assess the priorities and discharge its responsibilities as best it can on the basis of
that assessment.
Economic Principles.
In general Shell Pakistan Limited believes that the interests of the community can be served most
efficiently by the a market economy.
Criteria for investment decisions are not exclusively economic in nature but also take into account
social and environmental considerations and an appraisal of the security of the investment.
3.Business Integrity.
Shell Pakistan Limited insists on honesty, integrity and fairness in all aspects of its business and
expects the same in its relationships with all those with whom it does business. The direct or
indirect offer, payment, soliciting and acceptance of bribes in any form are unacceptable practices.
Employees must avoid conflicts of interest between their private financial activities and their part in
the conduct of company business . All business transactions on behalf of Shell Pakistan Limited
must be reflected accurately and fairly in the accounts of the company in accordance with
established procedures and be subject to audit.
4.Political Activities
Of the company
Shell Pakistan Limited acts in a socially responsible manner within the laws of Pakistan in pursuit of
its legitimate commercial objectives.
Shell Pakistan Limited does not make payments to political parties , organisations or their
representatives or take any part in party politics. However, when dealing with governments, Shell
Pakistan has the right and the responsibility to make its position known on any matter which effects
itself , its employees , its customers , or its shareholders. It also has the right to make its position
known on matter affecting the community , where it has a contribution to make .
Of employees
Where individuals wish to engage in activities in the community , including standing for election to
public office, they will be given the opportunity to do so where this is appropriate in the light of local
circumstances.
5.Health, Safety and the Environment
Consistent with its commitment to contribute to sustainable development, Shell Pakistan Limited
has a systematic approach to health , safety and environmental management in order to achieve
continuous performance improvement.
To this end Shell Pakistan Limited manages these matters as any other critical business activity,
sets targets for improvement, and measures, appraises and reports performance.
6.The Community.
The most important contribution that Shell Pakistan Limited can make to the social and material
progress of Pakistan is in performing its basics activities as effectively as possible. In addition Shell
Pakistan Limited takes a constructive interest in social matters which may not be directly related to
the business. Opportunities for involvement - for example through community , educational or
donations programmes - will vary depending upon the scope for useful private initiatives.
7.Competition.
Shell Pakistan Limited supports free enterprise. It seeks to compete fairly and ethically and within
the framework of applicable competition laws; the company will not prevent others from competing
freely with it.
8.Communication.
Shell Pakistan Limited recognises that in view of the importance of its activities in which it is
engaged and its impact on national economies and individuals , open communication is essential .
To this end, Shell Pakistan Limited has comprehensive corporate information programmes and
provides full relevant information about its activities to legitimately interested parties, subject to
any overriding considerations of business confidentiality and cost.
In 1928, to enhance their distribution capabilities, the marketing interest of Royal Dutch Shell plc
and the Burmah Oil Company Limited in India were merged and Burmah Shell Oil Storage &
Distribution company of India was born. After the independence of Pakistan in 1947, the name was
changed to the Burmah Shell Oil Distribution Company of Pakistan. In 1970, when 51% of the
shareholding was transferred to Pakistani investors, the name of changed to Pakistan Burmah Shell
(PBS) Limited. The Shell and the Burmah Groups, retained the remaining 49% in equal propostions.
In February of 1993, as economic liberalisation began to take root and the Burmah divested from
PBS, Shell Petroleum stepped into raise its stake to 51%. The years 2001-2 have seen the Shell
Petroleum Company successively increasing its share, with the Group now having a 76% stake in
Shell Pakistan Ltd (SPL)- an expression of confidence.
Shell prides itself on supplying your company with the quality products and customer
service you have come to expect over the years. We aim to make doing business with us
as smooth as possible.
Aviation
Shell being the worldwide market leader in the aviation fuel supply, Shell Pakistan has
maintained a strong commitment to the aviation field in the country.
Shell's pioneering efforts in the early 1900's to establish aviation fuel supplies at key
(and often remote) airfields provided the infrastructure which was to make domestic and
international civil air travel a practical possibility. Shell was therefore a natural sponsor
for many pioneering aviation 'firsts'.
Over the years, Shell has maintained this strong commitment to aviation. It is currently the market
leader in aviation fuel supply at more airports than any other international supplier i.e. over 800
airports spanning almost 80 countries.
1909
Louis Bleriot crosses the English Channel using Shell fuel
1919
Sir Ross Smith K.B.E. and Sir Keith Smith KB.E. fly a Vickers Vimy on the first England to Australia
flight using Shell fuel.
1919
Sir John Alcock, K.B.E. and Sir Arthur Whitten Brown, K.B.E. use Shell fuel on first West to East
Transatlantic flight.
1920s
First operational flight of a Shell owned de Havilland Cirrus Moth.
1930s
Shell produces Avgas 100/130
1940s
Shell scientists assist Frank Whittle to develop the jet engine.
1950s
The first ashless dispersant piston engine oils are introduced by Shell. The Shell Water Detector is
also developed for testing jet fuel.
1960s
Aero Shell Turbine Oil 555 is developed especially for Concorde.
1970s
The first semi-synthetic multigrade oil for piston engines is introduced by Shell.
1980s
Shell launches regional Aero-centres specifically tailored for business jet pilots and their passengers.
1990s
Shell supply fuel for record breaking non-stop flight of a Boeing 747 from London to Australia.
1990s
AeroShell Grease 33, a superior multi-purpose airframe lubricant is introduced.
2000s
Shell is committed to being an innovative leader for customers in the General Aviation market of the
future.
Aviation Customer Service printable version
o AEROFUELS
Shell Aviation Vision and Policy on Health, Safety and the printable
Environment version
The mission and vision were prepared by a group of employees in consultation with senior
management.
David Weston
Managing Director
Shell Aviation Limited
In this way we aim to have an HSE performance we can be proud of, to earn the confidence of
customers, shareholders and society at large, to be a good neighbour and to contribute to
sustainable development.
It is the flight of our customers that ensures the continuation of Shell Aviation. Our
customers dictate all that we do because our success is directly related to the
partnerships we develop with them.
Product portfolio
Shell aviation products can be classified into 4 groups:
2. Aviation turbine fuels: for use in turbo fan, turbo jet and turbo prop
engines (Jet A1)
3. Power boost fluids: low volume specialist fuels (Methmix and Demin
Water)
Shell has been active in exploration and production (E&P) activities in Pakistan since
1994 in onshore and offshore areas of Pakistan. Shell's offshore interests are managed
and operated by Shell Development & Offshore Pakistan B.V. Its onshore interests are
managed by Kirthar Pakistan B.V. Both of these companies are wholly owned subsidiaries
of the Royal Dutch/Shell Group.
Shell’s Exploration & Production [E&P] activities in Pakistan are carried out by
two companies – Shell Development & Offshore Pakistan BV (SDOP BV), and
Kirthar Pakistan BV (KP BV), which manage its upstream interests both offshore
and onshore in Pakistan.
Shell’s onshore interests in Pakistan are held by Kirthar
Pakistan BV (KP BV). KP BV holds a 28% share in the Bhit gas
field development and in the Badhra development, operated by
Eni Pakistan Ltd; other partners include OGDCL (20%) and
Premier-Kufpec Pakistan BV (12%).
Shell’s Exploration & Production [E&P] activities in Pakistan are carried out by two
companies – Shell Development & Offshore Pakistan BV (SDOP BV), and Kirthar Pakistan
BV (KP BV), which manage its upstream interests both offshore and onshore in Pakistan.
.
Welcome to Shell Edge printable version
Welcome to Shell Edge. Our ultimate aim is to make it easy for you to conduct your
business. Our services have been designed to suit your unique needs. We offer direct
access to the appropriate expert who can give you the right answer straight away.
Whether you choose to contact us by telephone, facsimile, or e-mail, you can be sure that
you will receive the most reliable and efficient service at all times.
Introducing Shell Edge
Contact Shell Edge
Customer Service Center Operating Hours:
Our Services
Issues and Feedback
Shell, fully committed to achieving excellence in product quality and customer service, strives to
serve you even better today with the introduction of Shell Edge. Now you can simply focus on your
core business while Shell Edge takes care of the details.
Shell Edge is designed to meet your unique business needs, thus facilitating your business
operation at any time. Whether you choose to reach us by telephone, facsimile or e-mail, you can
be assured of the most reliable and efficient service at all times.
Through a single Toll Free Number 0800 CARES (0800 - 22737) for our existing customers and
0800 – 74355 (0800 – SHELL) for General Public, you can enjoy the quality services of Shell Edge.
Our automated systems as well as our dedicated professional team fully equipped with advanced
technology and telecommunications system is available to meet your various daily operational
needs.
You can avail our specialized services in the areas of Order placement, Delivery status, Price query,
Accounts, Product & Technical support, Site maintenance, Promotion details and New Business. If
you have any suggestions on our services or any other issues that you wish to discuss, we at Shell
Edge always welcome it through our Feedback & Issues service.
To maintain confidentiality of our customers and to increase the integrity of the processes, we have
introduced the option of Pin code unique to each customer. The option of changing the Pin code
rests with the respective customers.
We have also introduced the Tele-management Team to manage your business requirements on a
personalized level. We care for all your need, whether you want to start a business relation with
Shell Pakistan (new customer) or you want to re-establish your relationship with us (inactive
customers), feel free and confident that you will be serviced to the best, because You Can be Sure
of Shell.
After all, it is our endeavor to provide you with the right products and services, whenever and
wherever, allowing you to make the best use of your time and promising you a total peace of mind
at all times.
That’s Shell Edge,
Your Business Edge!
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Email:
Order Services
Account Services
Product Information & Engineering Services
Feedback & Issues Customer Services (General Emails)
Customer Service Assurance Manager
Mailing Address:
Shell Edge
Customer Service Center
Shell Pakistan Limited
Shell House,
6 Chaudhry Khaliquzzaman Road,
Clifton
Karachi 75530
Pakistan
Our Services
o Order Services
o Delivery Status
o Account Services
o Accounts Services
o Price Query
o Product and Technical Support
o Promotions
o Change your Pin Code Number
o Feedback and Issues
o Equipment Maintenance
o New Business
There's no stopping when you're in the transport business. Your goods and passengers
simply must reach their destination on time. That is why you must be able to rely on both
your long distance and local transport trucks and coaches to keep on going even under
the most severe circumstances.
Every day Shell fuels and lubricants ease the heavy load of truck fleets
in more than one hundred countries worldwide. Specially formulated for
diesel engines, Shell products will protect and improve your engine's
performance even under the most arduous of service conditions.
Used together, Shell's Rimula engine oils, Spirax gear oils and Retinax greases offer your truck's
driveline unparalleled power, performance and protection. Shell's hard-working, rugged and
dependable team of engine oils, gear oils and greases will keep your fleet working as hard as you
do.
Rimula X
Rimula D
Rimula C
Through continual innovation, we at Shell are dedicated to increasing the value of the Rimula family
of engine oils for our customers. To this end, we are constantly evaluating it against both the needs
of your operations and against the requirements of changing engine technology.
Rimula takes heavy duty engine lubrication to new levels of performance, giving you one worldwide
family of hardworking oils to protect your engines in all conditions. Rimula products work together
with the Shell Spirax range of world-class gear and axle oils, and the Shell Retinax portfolio of
wheel bearing and specialist automotive greases, to protect your entire drivetrain.
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Rimula X
Dependability
Shell Rimula X is one of the world's bestselling diesel engine oils - with a
reputation for rugged, hardworking performance. This reputation is built
on millions of litres over millions of kilometres protecting European,
American and Japanese engines.
Rimula X provides robust and dependable engine cleanliness and wear protection; it works with a
wide range of fuel sulphur levels; and helps maintain operational efficiency with none of the
compromises you find in many universal oils available at this level.
Versatility
The versatility of Rimula X has made it one of the world's leading oils for trucks, buses and tractors.
Recognised and approved by a wide range of OEMs, it is suitable for both light/medium duty
applications and heavy duty construction and mining equipment by Komatsu and other makers.
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Rimula D
Consistent Performance
Rimula D is a high quality multigrade engine oil that offers consistent
performance, without the additional costs of extensive approvals
associated with high specification oils.
Cost-effective
Taking advantage of the development of new additive and formulation technology, Rimula D brings
you the benefits and performance of a quality multigrade oil at a cost-effective price, providing cost-
control benefits for the truck companies or operators.
Rimula C
Rimula C is an economical monograde heavy duty diesel engine oil designed for
vehicles with old technology engines routine use.
Rimula C is suitable for wide range of old technology based european and Japanese
engines. It meets the minimum performance requirements of API-CC.
Shell Fuels
Shell is in the business of making better fuels for your vehicle. Find out
which of Shell's products suit your needs best and search for fuel-saving
tips.
Shell Petrols
All Shell Petrols now give you Better Mileage.
TV Commercial
If you have have enjoyed our TV advertisment on the Better Mileage
campaign, you have a chance to view it again.
Testing something in laboratory conditions is one thing, but we need to be sure that our formulation
lives up to the rigorous conditions you face every day on the road. We have proven through
extensive car fleet tests, that fuels treated with our Better Mileage formula can deliver enhanced
fuel economy when compared to untreated fuels. So we have taken this knowledge to develop our
latest generation of fuels which are designed to offer better mileage than previous Shell
formulations.
Our testing is carried out at Shell's ISO 9001 quality accredited laboratories in the UK and Germany
to procedures which are openly published (Society of Automobile Engineers USA). This test has
been rigorously audited by leading independent body British Standards Institute.
For our fleet tests, we took a wide range of popular cars and selected pairs of the same model, one
running on untreated fuel, the other using Better Mileage formula. From the city to the open road,
we tested these cars simultaneously for 10,000 miles, monitoring them continuously. At the end of
the tests we were able to see that the fleet which experienced greater fuel economy was that using
our Better Mileage formula.
Tips on How to Get Better Mileage from Your Fuel printable version
Shell knows how important your car is to your daily life. So, we've put together a list of
tips on how to get better mileage from your fuel.
1. Avoid over-revving your engine – change gear in good time
4. Avoid sudden braking– keep a good distance from the car in front
5. Avoid carrying excessive weight – clear your trunk out now and then!
Industry
At Shell, we combine our leading technology, product innovation and proven experience
to deliver solutions that optimise our customer's productivity. Our innovative products
and expert services meet the specific needs of industry, improving business practices and
performances. We deliver global solutions tailored for Fluids, Environment, Maintenance,
Energy and many other areas of industry.
Automotive Power
For repairs workshop of cars, bikes, If your business is power generation
and heavy vehicles, Shell have best and distribution, you can rely on Shell
range of lubricants to give workshop unique power grade lubricants for
client's engines an improved safety & performance.
performance and long lasting
protection.
Sugar
Protect your company's reputation
and product quality with the right
range of lubricants suitable for Sugar
industrial machine.
Auto Repairs
Protect your company's reputation and product quality with the right
range of lubricants. Shell's specially formulated lubricants will help
ensure your operations comply with manufacturing regulations, while
protecting your machinery and your products
To cater to the needs of the power sector, both public and private, Shell
has a range of mineral and synthetic based lubricants. Companies that
generate or transmit electricity continue to trust Shell for the optimal
performance of their equipment.
Shell Argina is one of the main products for this industry for a more
efficient running of machinery.
Liquefied Petroleum Gas (LPG) printable version
The Company’s principal business activity is storing, filling and marketing of Liquefied Petroleum
Gas (LPG) throughout Pakistan. The first LPG bottling plant was set-up by Burshane adjacent to
Pakistan Refinery in 1966. Due to its pioneering efforts in the LPG market in Pakistan, Shell is now a
household name in Pakistan and is considered synonymous with Quality, Reliability and Safety with
regards to marketing bottled LPG in Pakistan. In 2001 the Company participated in the privatisation
of LPG business of Sui Southern Gas Pipelines Limited (SNGPL) and managed to secure the
business. This has increased SGP’s indigenous allocations and gives it a market share of
approximately 8%.
The transformation process that began in July 1999 with the launch of the Shell Gas brand in the
Nawabshah territory has now been extended to over 50 territories throughout the country. The
Shell brand brings with it the complete ‘Customer Value Proposition’ offering which includes;
• Assured availability
• Free maintenance of equipment
• Correct weight
• Safe cylinders
• One stop shop convenience
Shell Gas has a clear strategy to offer and deliver differentiated Customer
Value Propositions to various segments of the market, in order to increase
customer satisfaction & retain our position as the premium LPG brand
available in the market. Shell Gas is focused on attracting more customers
and enhancing the brand by providing products and services to create
customer loyalty and market share on a sustainable basis
Our network offers you friendly service, a range of quality Shell fuels and
convenience shopping.
Society's expectations of big business are changing. These expectations include safe
places to live and work, a healthy environment, conservation of our bio-diversity,
environmental protection, clean air, clean water, reasonable return on investments and
job opportunities, to name a few.
At Shell Pakistan, we believe that the way to manage these challenges is through a
commitment to the principles of Sustainable Development.
Sustainable Development Road Safety
We understand the environment is an Shell Pakistan has always placed
vital factor in our lives. Here we great importance on the health,
discuss key environmental Projects safety and environment aspect of the
Shell Pakistan is undertaking. society it does business in.
Sustainable Development Principles »
Community Initiatives Shell Tameer Program
Shell has always prided itself on its Learn about Shell Tameer
contribution towards social and Program.
welfare development in Pakistan.
Free Eye Care Camps »
Medical Camps In Nothern Pakistan
Due to Bad Weather »
Managing Director's Message-Social
Developement »
Being at Shell is about values – that’s what defines us - What defines us as a company;
our values and a strong commitment. Shell’s strong general business principles provide
the anchor for all our activities. Our core values of honesty, integrity & respect for people
are at the heart of the way we manage our business. These principles embody our values,
our commitment to society.
The future of Shell is inextricably linked to the future of Pakistan. Our commitment to
society, its past & present, continues with the hope of securing a better future for all.
The communities of the area are now very receptive and contributing to
the betterment of the environment of the area. The project has been putting special emphasis on
building capacity of the local community to carry out conservation and development activities by
themselves.
Community Initiatives
Shell being a responsible corporate citizen has always contributed in society through
various activities
Shell has always prided itself on its contribution towards social and welfare development
in Pakistan. Since 1993, the company has donated over Rs. 40 million to a number of
worthy causes.
Shell has established itself as a responsible corporate citizen; not only working towards
its profitability but also that of the community it is based in.
Shell Pakistan's relief activity for TSUNAMI victims.The PR has also got a very warm response in
local media here in Pakistan and we have succesfully been able to obtain 6 prominent insertions in
some of the leading daily newspapers.
Community Initiatives
At Shell Pakistan, we believe winning hearts and minds is as
important as winning markets. We believe that business has a
fundamental role in delivering society’s goals – be it economic,
social or environmental. Over the last decade, we have
developed a robust programme of social investment which
supports organizations and initiatives in the areas of health,
education, welfare, community development, heritage and
environment dedicated to the welfare of the underserved and underprivileged members of our
society. As part of its commitment to our strong General Business Principles, Shell Pakistan believes
Sustainable Development provides us the framework for meeting society’s expectations today and
its aspirations for tomorrow.
We as a responsible corporate citizen feel that in a country where we are doing business, we need
to work shoulder to shoulder in solving the problems faced by society.
There are four primary areas, on which we focus for our social investment. Those are: health,
education, environment and heritage. The projects include LAYTON RAHMATULLAH BENEVOLENT
TRUST (LRBT), a chain of six hospitals throughout the country, providing free eye care treatment
including cornea replacement to over one million patients free of cost annually; THE KIDNEY
CENTRE (TKC), which provides free medical treatment including dialysis to poor and needy patients;
KARVAN-E-HAYAT, one of the only mental healthcare facilities in Karachi.
In education, we support BEHBUD ASSOCIATION, which supports girls’ schooling; HUMAN RIGHTS
EDUCATION PROGRAMME and THE BOOK GROUP, which provides quality textbooks for under-
resourced schools We also support ‘The SOS CHILDREN’S VILLAGES’ in Pakistan, which provide
home and education to destitute children. A Shell House by the name of ‘Ashiana’ at the SOS
Villages in Karachi stands as a testament to our dedication to this cause.
In our efforts for the conservation of heritage, we support a number of
have been neglected despite being declared UNESCO World Heritage Sites. Among these, is the
magnificent ROHTAS FORT, built by the Emperor Sher Shah Suri in the 15th century.
We are proud to be the only corporate entity, which is currently engaged in supporting this
particular project. We have also been one of the key contributors in the restoration and
development of the MOHATTA PALACE MUSEUM- a key heritage site in Karachi, having a long
association with the father on the nation.
Message from Shell Pakistan's Country Chairman & Managing Director-Mr. Faroooq
Rahmatullah
People make it happen at Shell Pakistan. A dynamic, young workforce of men and women
bring dynamism, energy, creativity to the business, and leads the way for the future.
Shell Pakistan has always placed great importance on the health, safety and environment
aspect of the society it does business in. Safety is our first priority, and we base our
policies on the belief that all accidents are preventable.
As part of behaviour change programme for the drivers a "Positive mind Set Change Training" has
been developed by engaging Professional Psychologists which is focused on behaviour modification
& mind set change. This training module has been merged with the conventional Defensive Driving
Course.
In order to further strengthen the message conveyed through the training courses, monthly HSE
Tips are issued to drivers on the importance of safety.
Route Hazard Maps have been developed to establish major black spots on main Tank Lorry Routes
and a system of communication to the drivers has been established to effectively manage road
hazards.
Concept of "Friends of Drivers" (FOD's) has been introduced to promote on-road counselling to
drivers. Based on their performance these FOD's give out positive as well as negative points to the
drivers League System.
Haulier/Contractor Professionalism
This is a two year project to achieve compliance with Shell haulier HSSE
Standards in line with seven core areas and supporting areas of
Professionalisation. The objective is to impart relevant training in these seven
core areas and prepare their individual organisation to manage their respective
RT-HSSE in line with Shell Group standards. There is immense enthusiasm and
participation being demonstrated by the hauliers and the exhibits show their on-the-job training
which Shell is currently facilitating during next 24 months.
The introduction of International Standard ADR Vehicles has opened a new era in the vehicle
standards in Pakistan. It's a big change from past when predominantly vehicles with wooden cabins
were being used.
Shell has played the leadership role in developing new vehicle standards for petroleum carrying
cargoes. These draft standards are currently being finalised before forwarding them to the newly
established autonomous industry body, namely OGRA (Oil & Gas Regulatory Authority) for their
enactment.
Tameer is a sustainable development program for youth, run by Shell Foundation globally
by the name of Shell LiveWIRE.
"Livewire", the conceptual name of "Tameer" was launched in the uk in 1982, is supporting over a
quarter of a million potential entrepreneurs today, flourishing in 14 other countries of the world
"Tameer" is a stand alone project, with human resource dedicated only to this project and does not
link in any way to Shell Pakistan's business.
Shell Globally
o The aim of the Royal Dutch/Shell Group is to meet the energy needs of society, in
ways that are economically, socially and environmentally viable, now and in the future.
o "Shell" stems from an arrangement between two separate companies, Royal Dutch
Petroleum Company and The "Shell" Transport and Trading Company p.l.c., where by they
share interests in the companies they jointly invest in - "the Group".
o Royal Dutch is domiciled in the Netherlands and Shell Transport in the UK.
o There are some 740,000 shareholders of Royal Dutch Petroleum Company and
some 270,000 shareholders of The "Shell" Transport and Trading Company, p.l.c.
o Shares of one or both companies are listed and traded on stock exchanges in eight
European countries and in the USA.
o Operating in more than 140 countries around the world.
o Direct workforce of more than 90,000 people.
o Shell serves over twenty million customers a day through some 46,000 service
stations worldwide.
o Shell's Retail network is the largest in the world.
o Philip Watts is the Chairman of the Committee of Managing Directors (CMD) of the
Royal Dutch/Shell Group of Companies and Chairman of The "Shell" Transport and Trading
Company, plc.
o Shell Renewables is one of the five core businesses of the Shell Group, established
in 1997 to develop commercial opportunities in both solar and wind energy. Active in over
90 countries spanning Europe, the Americas, Africa, the Middle east and Asia Pacific.
o The company traces its origins to a business set up in 1833 in London by Marcus
Samuel which traded in oriental sea shells.
Shell Pakistan
Farooq Rahmatullah, Chairman & Managing director Shell Pakistan Limited, writes about the
evolution of Shell in Pakistan and the present and future challenges for Shell Oil Products in
Pakistan’s volatile business and political environment.
As Shell Pakistan approaches its 10th anniversary next year, there will be many reflections on past
achievements and future aspirations. But a look back at the past goes further than 10 years. In
fact, the Shell brand name enjoys a 100-year history in this part of the world, dating back to 1899
when Asiatic Petroleum, the far eastern marketing arm of two companies: Shell Transport Company
and Royal Dutch Petroleum Company, began importing kerosene oil from Azerbaijan into the
subcontinent. Even today, the legacy of the past is visible in a storage tank carrying the date –
1898.
Undoubtedly, it is a company, or rather a presence that has evolved - from the days of Burmah
Shell Oil Storage Distribution in 1928 to the post independence Burmah Shell Oil Distribution
Company of Pakistan in 1947 which went on to become Pakistan Burmah Shell (PBS) during the
nationalist years of the 1970s. And finally, in 1993, as economic liberalisation began to take root
and the Burmah divested from PBS, Shell Petroleum stepped into raise its stake to 51%. The last
two years have seen the Shell Petroleum Company successively increasing its share, with the Group
now having a 76% stake in Shell Pakistan Ltd (SPL). At Shell Pakistan, we see this as an
expression of confidence.
The transition into a fully integrated company was an experience fraught with growing pains as well
as exciting new directions. As a witness to some of those moments, or as I call them, the
transformative milestones, I can only add that it took vision and commitment on the part of the
management and every employee to break away from the old ways, adopting new styles of doing
business, adapting to new thinking, and yet retaining the best practices of the old company.
Today Shell Pakistan Limited is the second largest Oil Marketing Company in Pakistan with an
overall market share of approximately 20% for all petroleum products. Other major players include
Pakistan State Oil and Caltex. With a turnover exceeding USD 1 billion and sales of 3.7 million
tonnes of products, it is a company that has demonstrated the ability and the drive for sustainable
success.
Today a dynamic, young workforce of men and women determine the future of the company.
Currently 49 SPL staff is working on secondments throughout the Group. For Shell Pakistan and for
the country itself, this is an unrivalled achievement and one that gives me great pride. Change has
also come with the increasing number of women entering the workforce at Shell Pakistan, taking on
leadership roles and challenging positions hitherto only held by men - an encouraging sign towards
building a diverse, inclusive company. This year saw the first Pakistani woman on the Board; two
women on the management team, the first female auditor and many more women choosing Shell as
an employer of first choice. In a traditionally male dominated industry and moreover, in a male
dominated society, these are giant leaps forward.
2002 has been an exciting and remarkable year for us, more so in light of the volatile events of last
year and the internal upheavals resulting from the international situation, border tensions and
political transition from a military government towards democratic change. Despite instability and
few setbacks principally in the aviation business, Shell Pakistan performed robustly, steering its
course through troubled economic and political waters.
From a NIAT (Shell Share) of USD 8.1million and a ROACE of 12.1% in 2001, NIAT for YTD-Oct.
2002 has already crossed the USD 16 million mark and ROACE stands at 18%. Increase in retail fuel
margins and high lubricant sales growth were contributing factors to this healthy uplift. Shell
Pakistan also continued to enjoy the second highest brand share of preference in SOPE.
In the last two years, deregulation of the downstream oil industry of Pakistan has dominated our
attention in many ways. Shell Pakistan has been a leading player in engaging stakeholders, sharing
the model for deregulation and working towards harnessing gains for the industry and for the
consumer. Although lubricants were deregulated in 1993, the first step towards relaxation of
controls on main fuels was the complete deregulation of furnace oil in July 2000. Since then, further
controls have been eased which includes pricing of all products and deregulation of AGO imports.
Despite deregulation, the retail fuel margins are among the lowest in the region. Until 2002 they
were fixed at 2% and since March 2002 they have been increased to 3.5% - a gain made possible
due to the concerted efforts of the downstream oil industry led by Shell Pakistan.
Our presence is endorsed with a RVI network consisting of 550 sites across the country taking the
overall number of retail sites to more than 1200 (including the PBS legacy network). To date, 48
CNG projects have been commissioned on our Network, contributing to the promotion of cleaner
fuels and increased profitability of the company. For Retail, the YTD NIAT is $ 7.3 million, which I
might add has already exceeded its full year target.
On the commercial front, the overall January -October 2002 volumes and C2 for lubricants are 13%
and 30% higher than the same period last year. The commercial business is at the forefront of
delivering value to a diverse customer base which includes some of the largest power plants in the
country, over 500 textiles units, as well as major operators in the sugar and packaging sector.
Shell Pakistan faces one of the highest road exposures across the Shell World, with an exposure of
almost 172 million kilometres of road network. As road safety is a critical business and reputation
issue, SPL has a zealous commitment to increasing road safety at the operational level and concern
for road safety has also been extended to include the community through public road safety
programs. Some of the innovative programs and initiatives include:
o Training more than 10,000 drivers over the past seven years in Defensive Driving
techniques.
o Mobile training bus has enabled 3000 drivers operating in remote locations to also
receive adequate training.
o More than 4000 drivers have undergone eyesight-screening programme and about
300 drivers have been supplied with prescription glasses free of cost.
o An in-house fit-for-purpose rehabilitation program to manage high drug usage
among drivers has been introduced.
o For effective driver fatigue management, a leading cause of road accidents and to
bolster driver counselling, SPL has initiated:
o - Friends of Drivers (FoD) scheme for on-road counselling
o - Total of 8 rest stations for drivers across the country.
o - Route Hazard maps
o The recently launched Corporate Road Safety Plan aims to enhance visible
leadership commitment for road safety at all levels in order to achieve zero tolerance in
fatalities. Road safety features at the top of the agenda in staff communication meetings at
countrywide locations with the personal involvement of the Country Chair.
In Pakistan, Shell is strongly commitment to Sustainable Development as a way to meet the needs
and expectations of society and contribute to the economic and social development of Pakistan.
Several initiatives in the past year highlight Shell Pakistan’s commitment to health, safety as well as
environmental and social development. Following is a glance at some of the highlights of 2002:
Shell Retail won the business for re-fuelling the first CNG buses in Pakistan. The bus company plans
to operate 300 dual fuel buses in Karachi (the largest city in Pakistan and among the fastest
growing cities in the world) and will be a milestone towards promoting cleaner fuels in the public
transport sector.
The company is the only OMC in Pakistan to have initiated a tier-3 marine oil spill response exercise
in active collaboration with the local authorities.
Over 15000 retail attendants, many of them with little or nor formal schooling, are improving their
reading and writing skills through the Elementary Education Programme.
A robust Social Investment programme covering over 25 projects in the areas of health, education,
community welfare, heritage and environment. Specific areas have included female education, AIDS
awareness, leprosy eradication, eye disease, a Shell sponsored home for orphans, restoration of two
key national heritage sites, human rights education and many other initiatives for community
healthcare and education.
Looking ahead…
With the Pakistani economy poised for a turnaround and an agri-based economy that relies heavily
on AGO, making gains and inroads into the AGO market promises significant and sustainable
growth, especially in the agricultural / rural markets. CVPs are being developed to promote not only
AGO sales but also to have lubricants tied in with them. The optimisation of cross – business
resources is the need of the day and it is an approach that will give enhanced value for money.
Such cross-functional linkage is also being evaluated to leverage LPG distribution network for
utilising Retail and Commercial arrangements.
Pakistan is a country, which is undergoing paradigm shifts in terms of opportunities arising from the
liberalisation and deregulation policies of the government. The country is exhibiting non-OP
opportunities such as gas utilities' privatisation, the prospect of gas import pipelines, and
privatisation of organisations in the upstream sector. In light of these trends, Shell Pakistan is
currently involved in the development of the South Asia Gas demand and supply database under the
auspices of Shell Gas & Power. This database will help in assessing the opportunities throughout the
South Asian region.
Furthermore, owing to Pakistan’ s strategic geographical location Shell Pakistan has been selected
by the CMD as the vehicle for NME in Afghanistan. This NME will establish Shell brand presence by
introducing high quality fuels and lubricants in Afghanistan.
And last but not least, as we grow the business in many profitable directions and seek innovation
based success, the principles and values of Shell continue to provide the anchor for all our activities.
We believe our competitive differentiation will not only be based on delivering value but espousing
and acting on values