Shell plc is in advanced negotiations with Abu Dhabi National Oil Company (ADNOC) to sell its network of roughly 600 retail fuel stations in South Africa for about $1 billion (R16.3 billion). The deal would give ADNOC an estimated 10% share of the South African fuel retail market, making it a major player in a sector that has seen recent consolidation.
The transaction is part of Shell’s broader strategy to streamline its downstream operations and free capital for upstream and LNG projects. Shell has been reviewing its downstream portfolio globally since at least May 2024, and the South African divestment is the latest step in a plan to focus on higher‑margin upstream activities and support its energy‑transition goals.
ADNOC’s interest in the South African network aligns with its $150 billion investment plan for 2026‑2030 and its broader push to diversify revenue streams outside the Gulf. By acquiring a substantial retail footprint, ADNOC gains immediate access to a mature market and a platform for future growth in Africa, complementing its existing upstream and petrochemical assets.
The sale will reshape the South African fuel market, adding a new competitor to incumbents such as Engen and Glencore. The transaction could accelerate consolidation trends and alter competitive dynamics, potentially affecting pricing, supply chains, and customer choice in the region.
Shell has confirmed that the divestment process remains underway and that it is committed to preserving operating capabilities and securing the best outcome for employees and customers. ADNOC has stated that it continually reviews growth opportunities and declined to provide further detail on the deal.
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