Shell is in talks to sell its South African fuel station network to Abu Dhabi National Oil Company (ADNOC). bloomberg Report.
The potential deal, which is estimated to be worth around $1 billion (£737.52 million), would see ADNOC acquire 600 of Shell's retail outlets in South Africa. This will help ADNOC achieve approximately 10% share in the country's fuel retail market.
ADNOC became the preferred candidate after earlier talks between Shell and commodity trading firm Gunvor Group broke down, the news agency reported.
Its report also indicated that a deal between Shell and ADNOC could be finalized as soon as this quarter, with negotiations at an advanced stage.
These discussions are taking place against a backdrop of energy market volatility related to the ongoing conflict in the Middle East.
This environment has affected major energy companies, including Shell, which recently revised down its first quarter (Q1) expectations for gas production.
Shell, which has been operating in South Africa for more than 100 years, announced plans to exit its downstream operations in the region at the end of 2024.
Earlier this year, Shell Net income recorded at $4.1 billionOr $0.71 per diluted share for the fourth quarter of 2025, up from $928 million, or $0.15 per diluted share, for the same period in 2024.
Adjusted earnings for Shell in Q4 2025 were reported at $3.3 billion, representing an 11% decrease from the previous year and below analyst expectations of about $3.5 billion.
ADNOC previously announced its intention to invest $150bn (Dh550.88bn) from 2026 to 2030, aiming to expand and respond to energy needs around the world.
Before the Iran conflict, ADNOC accounted for about 4% of global oil production.
“Shell in talks with ADNOC for sale of South Africa fuel stations” was originally created and published by offshore technologyA GlobalData owned brand.
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