Shell is nearing the sale of its fuel stations in South Africa to a unit of Abu Dhabi’s biggest oil company in a deal valued at about $1-billion, according to people familiar with the matter.
Shell and the retail arm of Abu Dhabi National Oil Co. are preparing to announce an agreement in the coming days, the people said, asking not to be identified as the matter is private. A transaction would give the Middle Eastern company control over 600 retail fuel outlets, or about 10% of the market in Africa’s biggest economy, adding to Adnoc’s deal spree as it expands globally.
Adnoc Distribution emerged as the preferred bidder for the portfolio earlier this year after talks with Gunvor Group — one of the world’s biggest independent oil traders — fell through. For Shell, the sale would be a step forward in its plan to sell non-core holdings as it focuses on assets such as those in Canada in a push to sustain oil and gas production in the long-term.
Talks are advanced, and no final agreement has been reached, the people said. Shell and Adnoc Distribution declined to comment.
The sale process, which started in 2024, has progressed despite the conflict in the Middle East bringing large-scale disruption to Adnoc’s business. The company’s investment unit XRG this week announced the purchase of a stake in a gas project in Argentina and has said it plans to add to global deals that have already seen it invest in assets from the US to Africa and Europe.
