Shell Petroleum B.V. has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, Shell said in a statement.
The transaction, subject to regulatory conditions and approvals, forms part of Shell’s strategy to simplify its portfolio and focus investment on businesses where it has competitive strengths.
Shell Nigeria Gas distributes natural gas to industrial and commercial customers in Nigeria.
“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,” said Elohor Aiboni, Shell’s country chair in Nigeria.
“We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership.”
Aiboni said Shell would continue to focus on its deepwater and integrated gas businesses in Nigeria.
Established in 1998, Shell Nigeria Gas Limited operates about 170 kilometres of gas pipelines across Ogun, Abia and Rivers states and supplies more than 130 connected industrial and commercial customers.
The transaction includes Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Shell said the business focuses on domestic gas distribution and does not engage in upstream gas production, liquefied natural gas or international gas trading.
Shell Nigeria Gas Group will remain part of Shell and continue operating as usual until the transaction is completed.
Vaaris Energy has interests across the oil and gas value chain and an existing operational presence in Nigeria, the statement said.
Shell’s remaining interests in Nigeria include deepwater operations and its stake in Nigeria LNG.
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