KEY POINTS
- Shell is in advanced talks to sell its 600 fuel stations in South Africa to ADNOC for about $1 billion
- ADNOC became the preferred bidder after Shell’s negotiations with Gunvor Group collapsed
- The deal supports Shell’s exit from downstream operations while boosting ADNOC’s expansion into African markets
Shell Plc is in advanced discussions with Abu Dhabi National Oil Company, ADNOC, over the potential sale of its retail fuel network in South Africa, in a deal estimated to be worth about $1 billion.
According to a Bloomberg report citing sources familiar with the matter, ADNOC has emerged as the preferred bidder after earlier negotiations between Shell and commodity trading firm Gunvor Group failed to reach an agreement. The deal could be finalised as early as the current quarter if talks progress successfully.
The proposed transaction would involve the sale of approximately 600 fuel stations operated by Shell across South Africa, a move that would significantly expand ADNOC’s footprint in the country’s downstream petroleum market.
Strategic shift as Shell exits downstream operations in South Africa
The discussions come against the backdrop of ongoing volatility in global energy markets, partly driven by geopolitical tensions in the Middle East. These pressures have already led Shell to scale back its first-quarter gas production outlook.
Shell had announced in late 2024 its intention to exit downstream operations in South Africa, ending a presence in the country that has spanned more than a century. The potential sale of its retail outlets represents a major step in that divestment strategy.
For ADNOC, the acquisition would mark a strategic expansion into Africa’s most industrialised economy, giving it access to roughly 10 percent of South Africa’s fuel retail market. The move aligns with the company’s broader growth ambitions, which include plans to invest up to $150 billion between 2026 and 2030 to strengthen its global energy position and meet rising demand.
Despite the advanced stage of negotiations, neither Shell nor ADNOC Distribution has officially commented on the reported talks.
