Shell is in advanced talks with Abu Dhabi National Oil Company (ADNOC) over the possible sale of its retail fuel station network in South Africa, according to reports citing people familiar with the matter. The deal, which has not yet been finalized, could be valued at around $1 billion.
The transaction would involve roughly 600 fuel outlets and give ADNOC an estimated 10% share of South Africa’s fuel retail market, significantly expanding the UAE company’s international downstream footprint. The discussions reportedly follow the collapse of earlier negotiations with commodity trader Gunvor Group, after which ADNOC emerged as the preferred bidder.
Shell has been gradually reshaping its global portfolio by divesting certain downstream assets, including retail operations in multiple regions, as part of a broader strategy to focus on higher-return energy businesses. Its South African operations date back more than a century, making the potential exit a significant structural shift in the local energy sector.
The talks come during a period of volatility in global energy markets, driven in part by ongoing geopolitical tensions in the Middle East, which have affected oil prices, investment flows, and corporate strategy across the sector. Analysts say such conditions have accelerated consolidation and asset reallocation among major energy companies.
ADNOC, which controls a significant share of global oil production capacity, has been expanding its downstream and retail presence internationally as part of a long-term diversification strategy.
If completed, the deal would mark one of the largest fuel retail transactions in South Africa in recent years and further deepen Gulf energy companies’ presence in African markets.
For more news and update, click here to download our mobile app – Veritas Daily
To explore advertising or sponsorship collaborations, click here to contact us
Leave a Reply