Adnoc on shortlist to buy Shell South Africa fuel stations

• Adnoc and Gunvor among bidders
• Portfolio includes 600 fuel stations
• Rothschild will manage the sale

Abu Dhabi National Oil Company (Adnoc) has been shortlisted to acquire Shell’s fuel stations and other downstream assets in South Africa for as much as $1 billion.

Shell’s portfolio in South Africa includes about 600 fuel stations and local trading operations, Bloomberg reported, without identifying its sources.

Shell has appointed Rothschild to run the sale and may select a buyer in the coming weeks, Bloomberg said.

Adnoc replied to an AGBI enquiry with “no comment”.

Swiss commodities trader Gunvor is also among the shortlisted bidders. Earlier contenders included Saudi Aramco, South Africa’s Sasol and Trafigura.

Shell has about 10 percent of South Africa’s fuel retail market.

Adnoc’s strategy is to expand internationally. In 2023, its Adnoc Distribution unit acquired a 50 percent stake in TotalEnergies Marketing Egypt, marking its entry into the North African market.

• Adnoc Distribution to spend billions on M&A deals
• Adnoc Distribution to pay $350m in interim dividend
• Adnoc Distribution ready to explore Egypt after Total purchase

Despite a 7 percent decline in full-year net profit in 2024 – attributed to rising finance costs and corporate tax – the company told AGBI in February that it plans to pursue acquisitions.

Adnoc has also ramped up international investment in petrochemicals, liquefied natural gas (LNG) and trading.

Last year, the company bought a stake in NextDecade’s LNG export project in Texas. It said it is exploring buying more natural gas assets in the US.

Earlier this month, Adnoc and Austria’s OMV created the $60 billion Borouge Group International.