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Saudi Aramco, Abu Dhabi National Oil Company (ADNOC) and commodities trader Trafigura are among the entities vying to acquire Shell’s service stations in South Africa, reported Bloomberg, citing sources.
The sale, which could fetch close to $1bn, includes a network of 600 service stations and is part of Shell’s downstream unit in the country.
The assets have also garnered interest from South Africa’s Central Energy Fund, which owns PetroSA, as well as Sasol and Oman’s OQ Trading, the sources said.
A decision on the winning bid is expected by the end of the year, although it may extend into 2025.
Shell, which is working with Rothschild & Co. on the sale, said it does not comment on the divestment process.
Sources said the list of potential buyers is set to be narrowed in the coming weeks, with binding offers anticipated by December this year.
While some bidders may collaborate on their offers, others could withdraw from the competition, they added.
Aramco, ADNOC, Central Energy Fund, OQ Trading, Sasol and Trafigura all declined to comment, while PetroSA’s representative did not respond to inquiries right away.
The interest in Shell’s assets is indicative of a broader trend of trading companies investing in downstream oil businesses as trading margins narrow.
Trafigura’s Puma Energy division is already one of the largest retail fuel suppliers in Africa.
Trafigura and Sasol previously competed for a controlling stake in Engen, which operates a gas station chain in South Africa.
For oil producers and traders, owning retail outlets ensures stable demand for their fuels.
Both ADNOC and Aramco are expanding their trading operations and seeking new market opportunities.
They have been active in international deal-making including liquified natural gas supply contracts and stakes in export terminals.
ADNOC Distribution is looking to appoint a chief investment officer to spearhead its acquisition strategy, with ambitions to grow in the Middle East and Africa.
Aramco is also expanding its refining and petrochemicals business, with recent acquisitions in Chile and a petroleum business in 2022.
