Emirati Abu Dhabi National Oil Co. (ADNOC) and Swiss energy trader Gunvor Group are among the contenders to acquire Shell Plc's refining assets in South Africa worth $1 billion. This is reported by foreign media.
Potential bidders, including Trafigura's Puma Energy, Sasol Ltd. and South Africa's PetroSA, declined to participate in the deal.
Shell is committed to optimizing its assets, which include 600 petrol stations (10%) and trading operations in South Africa, in line with a strategy aimed at developing regions and businesses with higher profitability.
Shell has engaged Rothschild&Co to evaluate the proposed deal. Negotiations are ongoing and do not guarantee the conclusion of a final agreement.
Earlier, as a result of the strategy review, Shell decided to change the portfolio structure of refining companies and sell its stake in Shell Downstream SA (SDSA), while retaining SDSA's operational capabilities and brand. In addition, Shell sold Sapref's largest oil refinery to the state-owned South Africa's Central Energy Fund.
Sapref, located in the port city of Durban on the east coast of South Africa, has been out of service since 2022 as a result of severe flooding. Shell and BP (as a partner in the oil refining joint venture) decided to freeze costs and shut down the plant, which provided 35% of South Africa's refining capacity.
South Africa is a net importer of petroleum products, and the closure of Sapref and the country's second largest refinery, Enref, also located in Durban, has led to serious problems in South Africa's energy security.
In 2022, the South African government published new regulations that require refineries to meet the requirements for low-sulfur fuels by 2023, which has led to the obsolescence of most of the national oil enterprises.
Shell plc is a British multinational oil and gas company with headquarters in London (England). Shell shares are listed on the London Stock Exchange (LSE), Euronext in Amsterdam and the New York Stock Exchange.
ADNOC is the UAE's state—owned oil company. The company develops onshore and offshore gas fields and operates two refineries, Ruwais Refinery and Umm Al Nar. The headquarters is located in Abu Dhabi (UAE).
Gunvor Group is a multinational energy trader. It is headquartered in Geneva (Switzerland) with offices in Singapore, Houston, Stamford, London, Calgary and Dubai.
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