Freedom: Shell may sell its petrol station network in South Africa for nearly $1bn

Oil and gas giant Shell is close to selling its retail fuel business in South Africa. According to Bloomberg, the deal could be worth around $1bn, and one of the most likely buyers is considered to be a unit of the UAE’s national oil company Adnoc.

Shell currently controls about 10% of South Africa’s retail petroleum products market, operating a network of roughly 600 petrol stations. Although the company has not officially announced any intention to exit this business, analysts suggest the sale is consistent with its current strategy.

According to Freedom analyst Natalia Milchakova, in recent years Shell has been focusing on developing more promising areas.

“The company has focused on oil and gas production projects in Canada, as well as investments in renewable energy, so selling the South African petrol stations looks like a logical step as part of optimizing its asset portfolio,” the expert believes.

Potential buyer Adnoc is the UAE’s state-owned oil company. Freedom notes that for Adnoc, the acquisition of petrol stations will strengthen its position in one of Africa’s largest markets and expand its presence in BRICS countries.

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