Adnoc is reported to be in advanced talks to buy Shell Plc’s retail fuel operations in South Africa, a move that would transfer roughly 600 service outlets to the Abu Dhabi energy company. Sources indicate that Adnoc emerged as the preferred bidder after Shell’s prior negotiations with the Gunvor Group failed to produce an agreement.
The transaction, if completed, is likely to be priced at around $1 billion and would give Adnoc about 10% of the retail fuel market in South Africa, the continent’s largest economy by GDP. The formal sale process began in 2024 and has continued to advance even as conflict in the Middle East persists.
Company-level cooperation between Adnoc and other international energy firms is already underway in the region. In April, Adnoc committed $500 million alongside partner BP Plc to develop a gas field in Egypt, and the company has been building out its retail presence there as well.
The discussions for the South African assets remain at the negotiating stage and have not been confirmed as finalized. Observers point to the breakdown of the earlier talks with Gunvor as a pivot point that led Shell to engage more deeply with Adnoc. An agreement could be reached as early as this quarter according to reports.
For market participants and sector watchers, the possible transfer of 600 outlets represents a notable enlargement of Adnoc’s downstream retail footprint in Africa, while also marking a material divestment of Shell’s retail assets in that market.
What is known:
- Adnoc is in advanced talks to buy Shell’s retail fuel stations in South Africa.
- The portfolio comprises about 600 outlets and is estimated to be worth roughly $1 billion.
- Adnoc became the preferred bidder after talks between Shell and the Gunvor Group collapsed.
- The sale process opened in 2024 and has moved forward despite the Middle East conflict.
- Adnoc previously agreed to invest $500 million with BP Plc in an Egyptian gas field and has been expanding retail operations in Egypt.
These points reflect the available reporting on the negotiations as they stand. The situation remains subject to change until any definitive, signed agreement is announced by the parties involved.