British energy giant Shell has announced a deal to sell its South African downstream business, including 580 fuel stations, to the Abu Dhabi National Oil Company (ADNOC).

Shell said the sale, valued at about $1 billion (£21 billion), formed part of its strategy to focus on ‘key markets,’ as the company separately flagged a big drop in second-quarter gas production because of the US-Iran war.

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ADNOC said, Tuesday, the “acquisition marks a major step towards its ambition to become a global mobility and convenience retailer, while advancing its fuel retail footprint in Africa.”

“Shell South Africa Holdings has agreed to sell its equity interest in Shell Downstream South Africa” to ADNOC, the British group said in a statement.

“The transaction is expected to be completed in 2027, subject to regulatory approvals,” it added.

Shell said the company brand would remain in South Africa through licensing agreements, while customers would still have access to Shell’s premium fuels and lubricants.