Adnoc unit to buy Shell’s fuel stations in South Africa

Adnoc Distribution has confirmed it will acquire British energy company Shell’s fuel stations in South Africa for an enterprise value of $1 billion.

The acquisition will add 580 fuel stations, as well as wholesale fuel, aviation and lubricants operations, to the Abu Dhabi National Oil Company (Adnoc) subsidiary’s portfolio in one of Africa’s largest economies.

Shell Downstream South Africa (SDSA) sold nearly 3.5 billion litres of fuel and operated 360 convenience stores in 2025, Adnoc Distribution said in a statement to the Abu Dhabi Securities Exchange (ADX).

The acquisition from Shell South Africa Holdings is expected to close in 2027, subject to regulatory approvals. After completion, 28 percent of SDSA is likely to be sold to a local partner and to employee stock options.

South Africa will become the fourth country where Adnoc Distribution operates, following its 2023 acquisition of a 50 percent stake in TotalEnergies Marketing Egypt and its 2018 launch of retail fuel stations in Saudi Arabia.

The deal is projected to boost the company’s earnings per share by 6 percent in the first full year after the acquisition, the statement said.

Adnoc Distribution’s net profit for the first quarter of 2026 rose 21 percent year on year to AED771 million ($210 million).

XRG, an Adnoc unit, owns 77 percent of the fuel distribution company, which was listed on the ADX in December 2017.

Adnoc Distribution shares closed 0.8 percent lower at AED3.92 on Monday and are up 0.5 percent so far this year.

Further reading:

• New service stations fuel Adnoc Distribution profit jump
• Adnoc units resist initial impact of Iran war
• Adnoc and Shell sign Ruwais LNG offtake pact

In a separate statement, Adnoc said it has signed a 15-year liquefied natural gas supply deal with Inpex Corporation, a Japanese exploration and production company.

The LNG will primarily be sourced from the Ruwais LNG project, under development in Al Ruwais Industrial City, Abu Dhabi, and scheduled to begin commercial operations in 2028, Adnoc said in a statement.

The Inpex agreement takes long-term commitments for Ruwais LNG to more than 90 percent of the project’s 9.6 million tonnes per annum capacity, with nearly 23 percent committed to Japanese customers.

In November 2024 Adnoc Gas announced plans to acquire a 60 percent stake in the Ruwais LNG project from its parent company, Adnoc, for $5 billion upon completion.