Shell is negotiating with Abu Dhabi's ADNOC to sell its retail fuel stations in South Africa. The deal is estimated to be around $1bn, according to Bloomberg News, which cited sources close to the matter.
A vehicle passes a Shell gas station in Wijchen, Netherlands. Image credit: Reuters/Piroschka van de Wouw
ADNOC emerged as the preferred bidder after Shell's negotiations with commodity trader Gunvor Group fell through, and an agreement could potentially be reached as early as this quarter, the report said.
The talks come amid volatility in the energy market following the West Asia conflict, prompting the British oil major to trim its gas production outlook for the first quarter.
A deal would see the sale of Shell's 600 retail fuel outlets, giving ADNOC about 10% of the South African market, Bloomberg said.
Late in 2024, Shell, which has been in South Africa for more than a century, disclosed plans to exit its downstream businesses in the region.
ADNOC, which before the Iran war produced some 4% of global oil output, had previously disclosed plans to invest $150bn between 2026 and 2030 to drive growth and meet global energy demand.
Shell and ADNOC Distribution did not immediately respond to Reuters requests for comment.
