Africazine:
A significant shift in South Africa’s fuel retail landscape may be on the horizon as ADNOC pursues Shell’s assets.
The Abu Dhabi National Oil Company is reportedly in advanced talks to acquire Shell’s 600 retail fuel stations in South Africa. This deal, valued at about billion, could grant ADNOC approximately 10% of the market in Africa’s largest economy.
ADNOC Emerges as Preferred Bidder for Shell’s Stations
ADNOC has reportedly become the preferred bidder after Shell’s negotiations with Gunvor Group fell through. The sale process began in 2024 and has progressed despite ongoing conflicts in the Middle East. Sources indicate that an agreement could be finalized as early as this quarter.
Shell has confirmed that the divestment process is ongoing but has not disclosed specific details about the negotiations. The company has a long history in South Africa, having opened its first petrol station in 1902.
Impact of Shell’s Exit on South Africa’s Fuel Market
If the sale concludes, it would mark the end of over a century of Shell’s operations in South Africa. The company currently operates 591 retail outlets in the country, ranking thirteenth among the 61 countries where it has a presence.
Shell’s refinery in Durban has been inactive since March 2022, and the company is undergoing a comprehensive review of its global operations, leading to divestments in various countries, including Australia and several African nations.
Next Steps in the Acquisition Process
- An agreement between ADNOC and Shell could be reached as early as this quarter.
- Shell continues to manage the divestment process without disclosing further details.
This potential acquisition signals a major change in South Africa’s fuel retail sector.
