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Abu Dhabi’s ADNOC Front Runner to Buy Assets of Shell Plc’s South African Assets

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Adnoc and other companies in the United Arab Emirates have expressed interest across the breadth of Africa’s energy sector in a matter of weeks. Gulf states have ramped up investment in energy projects on the continent, ranging from renewable plants to oil fields, in recent years.

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Adnoc and other companies in the United Arab Emirates have expressed interest across the breadth of Africa’s energy sector in a matter of weeks. Gulf states have ramped up investment in energy projects on the continent, ranging from renewable plants to oil fields, in recent years.

Abu Dhabi National Oil Co. is among companies shortlisted to buy Shell Plc’s downstream assets in South Africa, valued at about USD1 billion, people familiar with the deal said last month.

Adnoc and other companies in the United Arab Emirates have expressed interest across the breadth of Africa’s energy sector in a matter of weeks. Gulf states have ramped up investment in energy projects on the continent, ranging from renewable plants to oil fields in recent years.

Bilateral trade between Africa and the UAE increased 38% in the two years through 2023 to USD 86 billion, according to an African Export-Import Bank report.The Gulf nations are diversifying their oil and gas industries by adding “assets and investments in other jurisdictions that can help smooth out cyclical curves and localised market fluctuations,” said Andrew Farrand, Middle East and North Africa director for Horizon Engage, a political risk consultancy.

Dubai-based Alpha MBM Investments LLC, a private investment office led by a member of the Dubai royal family, signed an agreement with Uganda to build a 60,000-barrel-a-day refinery and hold a 60% stake in the business, the nation’s presidency said in a 30 March statement.

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A deal for the USD 4 billion project follows a number of failed attempts to build a domestic refinery that will utilise crude discovered in landlocked fields. Alpha MBM didn’t respond to emails seeking comment.