Discussions on deal between Max Energy Company and Shell Brands International are underway to operate petrol stations under the Shell brand

A July 2017 deal between Max Energy Company and Shell Brands International to open petrol stations under the Shell brand in Myanmar is still being discussed.

The deal involves Max Energy owning and operating petrol stations under the Shell brand. It will also see Shell over the next three years expand beyond oil and gas exploration to retail and distribution of its fuels and lubricants in Myanmar. 

Meanwhile, Max Energy, which currently imports petrol to supply its filling stations across the country, will have all its fuel needs supplied by Shell International Eastern Trading Company. That will help it ensure security of supply and quality as well as reduce the costs associated with importing petrol, such as logistics and storage. 

Under the deal, Max Energy’s filling stations in Myanmar will be rebranded under Shell. Consumers can then buy Shell petrol, including Shell V-Power, which is similar to race fuel used by Scuderia Ferrari during the 2017 Formula One World Championship.

Max Energy currently provides the Octane 92 RON and Octane 95 RON fuels as well as diesel and premium diesel. The company, which is one of the strategic business units of Max Myanmar Group of Companies, now operates more than 40 filling stations under the Max brand in Myanmar. 

Since the deal was first announced last July however, Max Energy has yet to open any Shell branded stations. 

According to a responsible person from Max Energy, the company is currently still in the process of discussing the deal to own and operate the petrol stations with Shell. 

The Myanmar Times understands that the company is reviewing the investments involved to roll out and expand the number of petrol stations under the Shell brand.

The responsible person from Max Energy added that the company is also reviewing its long term plan in the country. 

Shell is the biggest single branded retailer and number one fuels retailer in the world with 43,000 sites in close to 80 countries serving 30 million customers every day. Opening new Shell branded sites in Myanmar is part of a wider strategy to expand in Myanmar.

Aside from fuels, Shell also wants to supply bitumen in Myanmar and has distributed Shell Lubricant products in the country under a partnership with local company Que Holdings since 2013.

The company also holds stakes in four offshore gas blocks in the country.

(The Myanmar Times: https://www.mmtimes.com/news/deal-max-own-operate-shell-petrol-stations-still-being-discussed.html )

​