The battle over Shell service stations in South Africa ignites

Saudi Aramco, Abu Dhabi National Oil Co., and the commodity trader Trafigura are competing to acquire Shell's gas station network in South Africa. The South African Central Energy Fund, which includes PetroSA, as well as Sasol and OQ Trading from Oman, have also shown interest in the assets. Shell could raise nearly USD 1 billion from the sale of its South African downstream unit, which includes trading and fuel supply. The sale, involving 600 gas stations, is being supported by Rothschild. Initial binding offers are expected by December, with the completion potentially not occurring until 2025. Some bidders might combine their offers, while others may withdraw from the race. PetroSA emphasizes that the main objective is the long-term sustainability of the company. Last year, Trafigura and Sasol were also involved in the race for Engen, South Africa’s largest gas station operator. The competition was ultimately won by the Vitol Group. For Adnoc and Aramco, engagement in gas station networks marks further diversification of their activities. The two Middle Eastern companies have recently been active internationally, with LNG supply contracts and stakes in export terminals. Aramco expanded its portfolio in the refinery and petrochemicals sector, particularly in China, and acquired Valvoline in 2022 and Esmax Distribucion in 2021, among others.