Abu Dhabi National Oil Company (ADNOC) is reportedly in advanced negotiations to acquire Shell’s retail fuel station network in South Africa, in a deal that could reshape the country’s fuel retail landscape.
According to Bloomberg, citing people familiar with the matter, ADNOC has emerged as the preferred bidder after previous discussions between Shell and Gunvor Group collapsed. The sources noted that talks remain private, but an agreement could be reached as early as this quarter.
The potential transaction involves approximately 600 service stations across South Africa, which would give ADNOC an estimated 10% share of Africa’s largest fuel market. The deal is expected to be valued at around $1 billion (about R16.3 billion), although the figure has not been officially confirmed.
The sale process, which began in 2024, has reportedly continued despite geopolitical tensions in the Middle East. ADNOC has declined to comment on the negotiations, stating only that it continuously evaluates global growth opportunities. Shell has also declined to comment, but previously confirmed that its South African divestment process remains ongoing.
If finalised, the transaction would mark the end of more than a century of Shell-operated fuel stations in South Africa. The company first entered the country in 1902, initially supplying oil for lighting and heating before evolving into a global energy and petrochemicals player.
Today, Shell operates roughly 40,000 fuel stations worldwide, with South Africa accounting for about 591 outlets, according to industry data.
The outcome of the talks is expected to signal a significant shift in ownership within South Africa’s downstream fuel sector, though the operational impact on consumers remains uncertain.