Shell has agreed to sell its entire stake in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, ending its involvement in the country’s domestic gas distribution business after more than two decades.
The deal was announced by Shell Petroleum B.V. Shell Nigeria Gas was set up in 1998 to supply natural gas to industrial and commercial customers. It operates about 170 kilometres of pipeline across Ogun, Abia and Rivers states and serves more than 130 connected customers.
Vaaris Energy has interests across the oil and gas value chain and already operates in Nigeria.
The sale covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the business has served industrial and commercial customers for over 25 years, backed by the commitment and expertise of its workforce. She said the agreement will give the company a stronger platform for its next phase of growth under new ownership.
Aiboni also reaffirmed Shell’s commitment to its deepwater and integrated gas investments in Nigeria, including its stake in Nigeria LNG Limited.
Shell said the sale fits its strategy of simplifying its portfolio and channelling capital into businesses where it believes it holds a competitive edge. The move is the latest in the company’s restructuring of its Nigerian assets.
The company’s operations are limited to domestic gas distribution. It has no involvement in upstream gas production, LNG or international gas trading.
Completion of the deal is subject to regulatory conditions and approvals. Until then, Shell Nigeria Gas Group will remain part of Shell and continue operations and customer services as usual.
The financial terms of the transaction were not disclosed.
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