ADNOC nears $1B South African fuel station deal with Shell

Abu Dhabi’s ADNOC Distribution is nearing the $1 billion purchase of Shell’s South African fuel station network, adding to a list of recent overseas deals by the Abu Dhabi energy giant, which has continued to deploy billions of dollars globally.

If it goes through, the deal would give ADNOC Distribution about 600 retail outlets, or roughly 10% of Africa’s largest fuel market, as Shell continues its divestment of non-core assets, Bloomberg reports.

Separately, ADNOC is proposing a new crude pricing formula that would tie key grades such as Upper Zakum, Das and Umm Lulu more closely to the Dubai benchmark rather than to Murban futures.

The plan would set monthly official selling prices for certain crude grades at a differential to the Dubai benchmark for cargoes loading two months ahead, potentially supporting ADNOC’s effort to increase production and exports following the UAE’s exit from OPEC.