Shell is in advanced talks with Abu ​Dhabi's state oil company Adnoc to sell ‌its retail fuel stations in South Africa in a deal likely to be valued at about $1 billion, Bloomberg News ​reported, citing people familiar with ​the matter.

Adnoc emerged as the preferred bidder after ⁠Shell's negotiations with commodity trader Gunvor Group fell ​through, and an agreement could potentially be reached ​as early as this quarter, the report said.

The talks come amid volatility in the energy market following the Middle East ​conflict, prompting the British oil major to trim ​its first-quarter gas production outlook.

A deal would see the sale of ‌Shell's ⁠600 retail fuel outlets, giving Adnoc about 10 per cent of the market in South Africa, Bloomberg said.

Late in 2024, Shell, which has been in South Africa ​for more ​than a ⁠century, disclosed plans to exit its downstream businesses in the region.

Adnoc, which before ​the Iran war produced some 4 per cent of ​global ⁠oil output, had previously disclosed plans to invest $150 billion between 2026 and 2030 to drive growth and ⁠meet ​global energy demand.