By: Zawya

Shell is ​in advanced ⁠talks with Abu Dhabi's state oil company ‌ADNOC to sell its retail fuel stations in South Africa ​in a deal likely to be valued at about $1 ​billion, Bloomberg News ​reported on Tuesday, citing people familiar with the matter.

ADNOC emerged as the preferred bidder ⁠after Shell's negotiations with commodity trader Gunvor Group fell through, and an agreement could potentially be reached as early as this quarter, the report said.

The talks ​come ‌amid volatility in ⁠the energy ⁠market following the Middle East conflict, prompting the British oil major ​to trim its first-quarter gas ‌production outlook.

A deal would ⁠see the sale of Shell's 600 retail fuel outlets, giving ADNOC about 10% of the market in South Africa, Bloomberg said.

Late in 2024, Shell, which has been in South Africa for more than a century, disclosed plans to exit its downstream businesses in the region.

ADNOC, which before the ‌Iran war produced some 4% of global oil ⁠output, had previously disclosed plans ​to invest $150 billion between 2026 and 2030 to drive growth and meet global energy demand.

Shell and ADNOC Distribution ​did ‌not immediately respond to Reuters requests for ⁠comment.