The Abu Dhabi National Oil Company (ADNOC) is in advanced negotiations to acquire the South African retail fuel network of Shell in a deal valued at about US$1bn. The transaction would include close to 600 service stations, representing roughly 10% of the national fuel retail market.
Sources indicate that ADNOC has been selected as the preferred bidder after earlier discussions between Shell and Gunvor Group failed to reach agreement. A final deal could be concluded within the current quarter, although neither party has formally confirmed the outcome.
Shell’s planned exit from South Africa’s downstream fuel sector marks the end of more than 120 years of operations in the country. The company is repositioning its global portfolio towards upstream oil and gas exploration and production, in line with broader strategic shifts among international oil majors.
For ADNOC, the acquisition aligns with its aggressive international expansion strategy. The company has committed up to US$150bn in capital expenditure by 2030 to strengthen its global energy presence, with Africa emerging as a key growth market.
The transaction is expected to have implications for South Africa’s fuel supply chain and competitive landscape. Petrol prices in the country remain regulated by the Department of Mineral and Petroleum Resources, meaning consumers are unlikely to see immediate price changes at the pump.
However, diesel prices are not regulated, creating an opportunity for ADNOC to introduce more competitive pricing strategies across its network.
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