Shell is negotiating the sale of its South African fuel station network to Abu Dhabi National Oil Company (ADNOC), according to a Bloomberg report.
The potential deal, estimated to be worth around $1bn (£737.52m), would see ADNOC acquire Shell’s 600 retail outlets in South Africa. It would help ADNOC gain approximately a 10% share of the country’s fuel retail market.
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The news agency reported that ADNOC became the preferred candidate after earlier talks between Shell and Gunvor Group, a commodity trading firm, were discontinued.
Its report also indicated that an agreement between Shell and ADNOC could be finalised as soon as this quarter, with the talks in an advanced stage.
These discussions are taking place against a backdrop of energy market instability linked to ongoing conflict in the Middle East.
This environment has affected major energy companies including Shell, which recently revised its first-quarter (Q1) expectations for gas production.
Shell, which has operated in South Africa for more than 100 years, announced plans in late 2024 to exit its downstream operations in the region.
Earlier this year, Shell reported net income of $4.1bn, or $0.71 per diluted share, for Q4 2025, up from $928m, or $0.15 per diluted share, in the corresponding period of 2024.
Adjusted earnings for Shell in Q4 2025 were recorded at $3.3bn, representing an 11% decrease from the previous year and falling below analyst expectations of approximately $3.5bn.
ADNOC previously announced its intention to invest $150bn (Dh550.88bn) from 2026 to 2030, aiming to expand and respond to worldwide energy requirements.
Before the Iran conflict, ADNOC accounted for roughly 4% of global oil production.
