Multiple global energy companies, including Abu Dhabi National Oil Company (ADNOC) and Saudi Aramco, are reportedly evaluating bids for Shell‘s downstream assets in South Africa, reported Bloomberg.
The potential sale, which sources suggest could exceed $800m, has also piqued the interest of South Africa’s Sasol, commodity trader Trafigura Group’s Puma Energy, and Glencore.
Talks are at an early stage and more entities could join the bid, the sources told the publication.
Shell has confirmed being approached by “several highly credible parties” for its South African downstream operations, although no specific bidders have been named.
A spokesperson for ADNOC’s retail arm has stated the company’s ongoing pursuit of growth opportunities but declined to comment on this particular matter.
Puma Energy, Sasol, Trafigura, and Glencore representatives all declined to comment, the publication said, adding that Aramco representative did not respond to questions.
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By GlobalDataThe Sapref refinery, a primary asset of Shell Downstream South Africa (SDSA), boasts a capacity of 180,000 barrels per day but has been dormant since 2022.
SDSA was formed after the merger of Shell South Africa Marketing and Shell South Refining, with Thebe Investment Corporation holding a 28% stake.
The potential divestiture, announced earlier this month, follows Shell’s global strategy review and could mirror the recent sale of a majority stake in Engen, South Africa’s gas station chain, to a Vitol Group subsidiary.
Both ADNOC and Aramco have been actively expanding their international footprint, with ADNOC entering the US LNG export market and Aramco acquiring fuel distributor Esmax Distribucion in Chile and Valvoline’s petroleum business.
Earlier this month, Shell Singapore, a Shell affiliate, agreed to sell its Energy and Chemicals Park in Singapore to CAPGC, a joint venture that consists of Glencore and Indonesian chemicals business Chandra Asri.
