Business
Shell, Thebe Near $1 Billion South Africa Oil-Asset Sale Agreement

Shell Plc and its South African partner, Thebe Investment Corp., are reportedly close to settling a long-standing valuation dispute, paving the way for the sale of Shell’s local downstream assets for as much as $1 billion. The agreement is expected to provide clarity for potential buyers, including major global energy firms.
A Deal Years in the Making
Shell operates a network of 600 service stations across South Africa, with Thebe Investment Corp. holding a 28% stake in the business. Thebe, a Black-owned investment firm, acquired its share in 2002 for around $70 million.
The dispute began in 2022 when Thebe sought to exit its stake, but the two parties struggled to agree on a valuation. Now, sources familiar with the matter indicate that an agreement is imminent, bringing an end to the impasse and allowing the sale to move forward.
Potential Buyers Show Interest
The sale is being managed by Rothschild & Co., and several major players are interested in acquiring the assets, including:
- Saudi Aramco
- Abu Dhabi National Oil Co. (ADNOC)
- Trafigura, a global commodities trading firm
A final agreement would enable these firms to submit binding offers in the coming weeks, according to sources.
South Africa’s Changing Oil Industry
The sale of Shell’s assets follows broader shifts in South Africa’s fuel industry. In recent years, major oil companies have been restructuring or divesting:
- Shell and BP Plc sold their stakes in Sapref, South Africa’s largest refinery, to the state-owned Central Energy Fund for a symbolic 1 rand after halting operations in 2022.
- Petronas sold its 74% stake in Engen, the country’s largest fuel retailer, to a unit of Vitol Group in 2023.
What’s Next?
With the valuation dispute nearly resolved, the Shell-Thebe sale could conclude soon, significantly reshaping South Africa’s downstream fuel market. As international energy giants like Saudi Aramco and ADNOC express interest, the deal could mark a new phase of investment in the country’s oil sector.
Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram
For more News in Johannesburg, visit joburgetc.com