- Shell has agreed to sell its Nigerian gas distribution business to Vaaris Energy, pending regulatory approvals.
Shell has signed an agreement to sell its entire stake in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited.
The company announced the agreement in a statement reported by The PUNCH on Tuesday.
Shell said the sale aligns with its strategy to simplify its portfolio and focus investment on areas where it has competitive strengths. The deal remains subject to regulatory conditions and approvals.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the company had supplied industrial and commercial customers for more than 25 years.
She said the agreement would give Shell Nigeria Gas a stronger foundation for its next phase under new ownership. Shell will continue to focus on strategic deepwater operations and integrated gas in Nigeria, she added.
Established in 1998, Shell Nigeria Gas Limited operates about 170 kilometres of gas pipelines across Ogun, Abia and Rivers states. It supplies natural gas to more than 130 connected commercial and industrial customers.
The deal also covers Shell Nigeria Gas Holding B.V., established in 2019. The company holds all but one of the shares in Shell Nigeria Gas Limited.
Shell Nigeria Gas focuses on domestic gas distribution. It does not engage in upstream gas production, liquefied natural gas operations or international gas trading.
Shell Nigeria Gas Group will remain part of Shell until the transaction closes. It will continue serving customers and operating as usual during the transition.
Vaaris Energy Limited has interests across the oil and gas value chain and an existing operational presence in Nigeria.
Shell said it would maintain its focus on deepwater operations and integrated gas in Nigeria, including its interest in Nigeria LNG.