Shell Exits S’Africa in $1bn Sale of 580 Fuel Stations, Ends Century-Old History

● Abu Dhabi National Oil Company (Adnoc) takes over, coughs out £748m to close a significant chapter in Shell’s presence in Africa, which dates back to colonial times.

Energy giant Shell has made a major break with its century-old history in South Africa, selling its 580 petrol stations to Abu Dhabi National Oil Company (Adnoc).

The $1bn (£748m) deal will allow the forecourts to retain the Shell brand under licence, and the company will keep drilling oil and gas off South Africa’s coast.

But the sale closes a significant chapter in Shell’s presence in Africa, which dates back to colonial times. Julius Weil, a local merchant, began selling kerosene under the Shell brand in 1902, and in 1921, the company set up a refinery in Durban.

It also marks a significant expansion for the state-owned Emirati giant Adnoc, which is steadily growing its exploration, trading and distribution activities across the world.

Notably, it comes as South Africa witnesses a growing number of Western companies heading for the exit, as violent anti-immigrant protests underscore a period of unrest and uncertainty in Africa’s largest economy.

Shell first flagged the divestment of its South African retail business, which reportedly had a 10pc market share, in 2024. The move is part of a worldwide strategy to narrow the company’s focus.

“This decision was not taken lightly,” the company said at the time. “Over more than 120 years in South Africa, Shell has built an enormous legacy that we can all be proud of.”

Colonial roots

In the 1980s, Shell was one of the targets of British anti-Apartheid activists, who picketed the company’s British garages and boycotted its products.

Despite the sale of its petrol stations, Shell will remain in South Africa, exploring opportunities in the Orange Basin and Cape Basin off South Africa’s potentially oil-rich west coast.

The company is also looking to drill for oil in the Wild Coast region to the east, but its plan has spent several years tied up in court challenges from environmental activists.

“Shell intends to remain a long-term partner of South Africa, supporting the country’s energy needs and ambitions in areas that are aligned with our strategy and where Shell has differentiated capabilities,” the company said in a statement.

Shell had already quit its broader African retail business in 2011, pulling out of 16 markets ranging from Morocco in the north to Namibia and Botswana in the south.

Shell and BP also offloaded a shuttered South African refinery in 2024 to the country’s state-owned Central Energy Fund.

Shell’s move comes amid a turbulent time in South Africa’s economy and politics.

The country has been rocked by a spate of anti-immigrant protests, some of which have turned violent.

At the end of June, 120 marches took place in one day, with 900 people arrested. Countries including Nigeria, Ghana and Malawi have repatriated as many as 25,000 citizens.