Abu Dhabi’s biggest oil company is reportedly close to taking over Shell’s South African fuel retail business in a deal worth about R16.3 billion.

BusinessTech reported that the retail arm of Abu Dhabi National Oil Company, known as Adnoc Distribution, is preparing to announce the deal within days.

The agreement has not yet been signed. Shell and Adnoc Distribution have also not commented on the reports.

If finalised, the deal would give Adnoc control of around 600 Shell petrol stations across South Africa. That represents about 10% of the country’s fuel retail market.

Shell’s SA Exit Takes Shape

The possible sale forms part of Shell’s wider move to cut back on non-core assets.

The company has been reviewing its downstream operations and shifting focus to projects that support long-term oil and gas production.

Shell’s South African sale process started in 2024. Adnoc Distribution reportedly became the preferred bidder earlier this year after talks with commodity trader Gunvor Group did not result in a deal.

The deal would also mark a major change for Shell’s history in South Africa.

Shell first entered the local market in 1902, supplying oil for lighting and heating before growing into a major global energy and petrochemical company.

Fuel Market Keeps Changing

South Africa’s fuel retail sector has already seen big ownership shifts in recent years.

In 2018, Glencore acquired Chevron’s Caltex-branded service station network in South Africa.

More recently, Vivo Energy, owned by Vitol, bought Engen, which is South Africa’s largest fuel station chain.

Shell has also been reducing its footprint locally. The company sold its stake in South Africa’s largest refinery to the Central Energy Fund after operations at the Durban refinery stopped in 2022.

What it Means for Drivers

Industry experts reportedly do not expect Shell’s exit to cause major disruption in South Africa’s fuel market.

However, the deal would still be a major moment for the sector.

If completed, it would bring one of the Middle East’s biggest energy players into a much stronger position in South Africa’s petrol station market.

It would also mark the end of a 124-year era for Shell’s direct fuel retail presence in the country.