South Africa’s downstream fuel sector could see a major shake-up as Abu Dhabi National Oil Co. (Adnoc) emerges as a leading contender to acquire Shell Plc’s downstream assets in the country.
The deal, reportedly valued at around $1 billion, would see the Gulf oil giant take over one of South Africa’s most iconic energy brands, marking a significant pivot in the local fuel supply landscape.
The potential acquisition follows Shell’s confirmation last year that it plans to exit its downstream operations in South Africa, including over 600 service stations, depots, and other infrastructure, currently held through Shell Downstream South Africa (SDSA).
The exit is part of Shell’s global strategy to streamline operations and focus on its transition to a net-zero business by 2050.
Shell has been a fixture in South Africa since 1902, but its exit is also tied to an unresolved dispute with its Black Economic Empowerment (BEE) partner, Thebe Investment Corporation.
Thebe reportedly triggered an “opt-out” clause, seeking to cash out its 28% stake in SDSA, further complicating the asset sale.
Now, with Adnoc shortlisted as a buyer, the spotlight turns to the UAE’s growing appetite for African energy assets.
In just a few weeks, Middle Eastern players have launched or secured deals worth more than $6 billion across the continent, with Adnoc, Alpha MBM, and XRG all making bold moves.
For South Africa, a deal with Adnoc would not just bring fresh capital but also potentially stabilise local fuel supply chains that have become increasingly import-dependent after the Sapref refinery closure in 2022.
While Shell’s departure marks the end of an era, it could open the door to a new chapter led by well-resourced Gulf investors looking to establish long-term footholds in Africa’s energy economy.
For local motorists and the trucking sector alike, what matters most now is whether the new owners will keep fuel flowing, prices stable, and service stations running.
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