16 Apr 2026
Shell Plc is currently in advanced discussions with Abu Dhabi National Oil Company regarding the sale of its retail fuel station network in South Africa. The deal is estimated to be worth around USD 1 billion, according to sources familiar with the matter who requested anonymity due to the private nature of the talks.
Shell plc is reportedly in advanced negotiations with Abu Dhabi National Oil Company (Adnoc) to sell its retail fuel station network in South Africa in a deal valued at շուրջ USD 1 billion, according to Bloomberg. The report cites sources familiar with the discussions, who requested anonymity due to the private nature of the talks.
Adnoc has emerged as the leading bidder after earlier negotiations between Shell and Gunvor Group did not materialize into a deal. An agreement could be finalized as early as this quarter. While an Adnoc subsidiary acknowledged that the company continuously evaluates growth opportunities, it declined to provide further details. Shell has also not commented on the matter.
Shell’s presence in South Africa dates back to 1902, with over 120 years of operations in the country. Its downstream business, Shell Downstream South Africa (SDSA), was created through a joint venture between Shell South Africa and Thebe Investment Corporation, a black economic empowerment partner holding a 28% stake. SDSA operates a network of approximately 591–600 fuel retail outlets nationwide.
This potential divestment follows the permanent closure of the Sapref refinery in Durban, previously co-owned by Shell and BP plc. Once responsible for nearly 35% of South Africa’s refining capacity, the refinery has remained inactive since 2022 after severe flood damage. Shell had announced plans in May 2024 to divest its majority stake in SDSA as part of a broader strategic review of its downstream and renewables portfolio.
For Adnoc, acquiring roughly 600 fuel stations would provide an estimated 10% share of the retail fuel market in Africa’s largest economy. The deal reflects Adnoc’s broader strategy to expand its footprint across Africa, despite ongoing geopolitical tensions in the Middle East. In April 2026, Adnoc also committed USD 500 million alongside BP plc to develop a gas field in Egypt, while continuing to strengthen its retail presence in that market.
Other companies that had previously shown interest in Shell’s South African assets—including Puma Energy (a subsidiary of Trafigura), Sasol Ltd, and PetroSA—are no longer involved in the bidding process, according to Bloomberg.
Shell’s expected exit aligns with a broader trend of multinational oil majors scaling back their downstream fuel retail operations in South Africa, driven by shifting market dynamics and strategic realignments.
Chevron Corporation was among the earlier companies to exit, having sold its South African and Botswana downstream assets—including over 820 Caltex-branded service stations and the Cape Town refinery—to Glencore plc in 2018 for USD 973 million. More recently, Vivo Energy, backed by Vitol Group, acquired Engen Ltd, the country’s largest fuel station operator.
If finalized, the deal would mark Shell’s full exit from South Africa’s retail fuel sector, ending a presence that has spanned more than a century.
The detailed article is published by https://trendtype.com/ can be accessed from https://trendtype.com/news/adnoc-is-in-advanced-talks-to-acquire-shells-south-africa-fuel-retail-network/
Source