Adnoc mulls bid for Shell’s downstream assets in South Africa

The Abu Dhabi National Oil Company (Adnoc) is reportedly eyeing Shell’s downstream assets in South Africa,Bloomberg reported on Friday, citing unnamed sources familiar with the matter. The potential sale, which could be priced at USD 800 mn, would be the latest step in Shell’s ongoing divestment from South Africa, following the sale of the country’s largest oil refinery in 2022. Talks are ongoing with “several highly credible parties,” Bloomberg quotes Shell’s spokesperson as saying.

What’s on the table: The sale would include the company’s aviation, marine, construction and road, trading and supply, commercial fuels, and lubricant operations, Shell had confirmed earlier this month. Shell owns a network of 600 stations across the country.

Other potential bidders reportedly include Saudi Aramco, South Africa’s chemicals and energy player Sasol, Switzerland-based Puma Energy, and Swiss company Glencore.

REMEMBER- The oil giant has been making acquisitions to expand its LNG business and diversify operations. Adnoc made its first investment in the US last week with the acquisition of a minority stake in a USD 18 bn Texas LNG project. It also acquired a 10% stake in a concession in Mozambique. The firm is also mulling a stake acquisition in AmeriGas, the propane distribution unit of US utility holding company UGI Corp, through its subsidiary Adnoc Distribution, as part of plans to diversify away from oil.