April 22, 2025 [Oil Price]- ADNOC and Gunvor Group are among the leading contenders to acquire Shell’s downstream assets in South Africa, according to international media reports. The $1 billion package includes around 600 retail fuel stations and trading operations under Shell Downstream South Africa (SDSA).
Shell is streamlining its global portfolio to focus on more profitable regions and operations. As part of this strategy, the company is exiting refining in South Africa but plans to retain operational capabilities and brand presence. Investment bank Rothschild & Co has been appointed to manage the sale process, although discussions remain ongoing.
Other potential suitors, including Trafigura’s Puma Energy, Sasol, and state-owned PetroSA, have reportedly declined to participate.
The move follows Shell’s earlier decision to sell its stake in Sapref, South Africa’s largest oil refinery, to the Central Energy Fund. Located in Durban, Sapref has been shut since 2022 following flood damage, and provided 35% of the country’s refining capacity. Its closure, along with that of the nearby Enref facility, has deepened South Africa’s fuel import dependence and raised energy security concerns.
Tighter fuel standards requiring low-sulfur fuels by 2023 have rendered most local refineries outdated, prompting international operators like Shell to rethink their presence.
The bidders, ADNOC and Gunvor, bring significant international energy expertise. ADNOC is the UAE’s national oil company with major upstream and refining operations. Gunvor is a global commodities trader with a strong footprint in oil trading and infrastructure, headquartered in Geneva.
Shell, a London-based energy major listed in London, Amsterdam, and New York, is continuing to reshape its global downstream presence to align with shifting market and regulatory dynamics.
A deal could reshape South Africa’s downstream market and offer a lifeline to local fuel supply logistics.
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