Shell Petroleum B.V. has reached an agreement to transfer its entire stake in Shell Nigeria Gas Group to Nigerian energy firm Vaaris Energy Limited as part of efforts to streamline its business portfolio.
The company disclosed the planned sale in a statement made available to The PUNCH on Tuesday, noting that the transaction remains subject to regulatory approvals and other conditions.
Shell said the decision aligns with its strategy of simplifying its portfolio and directing investments towards areas where it has competitive advantages.
Commenting on the agreement, Shell’s Country Chair in Nigeria, Elohor Aiboni, highlighted the company’s long-standing role in supplying natural gas to businesses across the country.
“Shell Nigeria Gas has served industrial and commercial customers in Nigeria for more than 25 years, supported by the commitment and expertise of its people.
“We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership. Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria,” she stated.
Established in 1998, Shell Nigeria Gas Limited operates approximately 170 kilometres of gas pipeline infrastructure across Ogun, Abia and Rivers states. It supplies natural gas to more than 130 connected industrial and commercial customers.
The proposed sale also covers Shell Nigeria Gas Holding B.V., incorporated in 2019, which owns all but one of the shares in Shell Nigeria Gas Limited.
According to the statement, Shell Nigeria Gas Group focuses exclusively on domestic gas distribution. Its operations do not include upstream gas production, liquefied natural gas or international gas trading.
Shell said the business would continue operating under its ownership until the transaction is completed. During this period, it will maintain its existing operations and continue supplying its customers as usual.
Vaaris Energy Limited, the prospective buyer, is a Nigerian energy company with interests spanning different segments of the oil and gas industry. The company also has an existing operational presence in Nigeria.
Following the planned divestment, Shell said its Nigerian investments would remain centred on deepwater operations and integrated gas. These include its interest in Nigeria LNG.
The agreement marks a proposed change in ownership for Shell’s domestic gas distribution business, which has spent more than two decades supplying industrial and commercial customers in Nigeria.