Shell has agreed to sell its entire stake in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, marking its exit from Nigeria’s domestic gas distribution business after more than 25 years of operations.
The transaction will transfer ownership of a business responsible for supplying natural gas to industrial and commercial customers across parts of the country.
Shell Petroleum B.V. announced the agreement, which 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 operates approximately 170 kilometres of gas pipeline infrastructure across Ogun, Abia and Rivers states, serving more than 130 connected customers.
Vaaris Energy Limited is a Nigerian-owned energy company with interests across different segments of the oil and gas industry and an existing operational presence in the country.
The acquisition is expected to provide the domestic gas distribution business with a new ownership structure and a platform for further growth. However, the completion of the transaction remains subject to regulatory approvals and other conditions.
Until the deal is finalised, Shell Nigeria Gas Group will remain part of Shell and continue its operations and customer services without interruption.
Shell Refocuses on Deepwater Oil and Integrated Gas
The planned divestment forms part of Shell’s broader strategy to restructure its Nigerian operations and concentrate investments on areas where it believes it has stronger competitive advantages.
The international energy company has continued to focus on deepwater oil production and integrated gas operations, including its interest in Nigeria LNG Limited.
Shell Nigeria Gas was established in 1998 and has played a role in expanding the use of natural gas among industrial and commercial customers in Nigeria. Its operations have focused on domestic gas distribution rather than upstream gas production, liquefied natural gas (LNG) production or international gas trading.
Commenting on the transaction, Shell’s Country Chair in Nigeria, Elohor Aiboni, said the business had served industrial and commercial customers for more than 25 years.
She acknowledged the contributions of the company’s workforce, noting that employees’ commitment and expertise had supported the business throughout its years of operation.
Aiboni expressed confidence that the agreement would create a stronger foundation for the next phase of the business’s development under its new ownership.
She also reaffirmed Shell’s commitment to maintaining its investments in Nigeria’s deepwater oil sector and integrated gas business.
Financial Details Remain Undisclosed
Shell and Vaaris Energy have not disclosed the financial terms of the transaction.
The sale represents another step in Shell’s efforts to simplify its portfolio and redirect capital towards its preferred areas of investment.
Although the company is preparing to leave the domestic gas distribution market, its planned divestment does not amount to a complete withdrawal from Nigeria’s oil and gas industry.
Shell’s retained interests in deepwater oil production and integrated gas operations, particularly Nigeria LNG, will continue to form important parts of its Nigerian portfolio.
The transaction’s completion will depend on the fulfilment of regulatory requirements and other agreed conditions.
For customers currently receiving gas through Shell Nigeria Gas, operations and services are expected to continue as usual while the parties work towards concluding the deal.
READ ALSO:
- Nigeria Demands Investigation Into Nigerian’s Death in South African Police Custody
- US Considers Using ‘Mother of All Bombs’ Against Iran – Report
- Trade Fair Complex Vows Crackdown on Fake Drinks, Backs NAFDAC
- Tinubu inaugurates campaign council, says governance won’t be sacrificed for electioneering
- NAF Recovers More Wreckage From Crashed Aircraft In Ondo
