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Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to indigenous energy company, Vaaris Energy Limited, ending its involvement in Nigeria’s domestic gas distribution business after more than two decades.
The transaction, announced by Shell Petroleum B.V., transfers ownership of a business supplying natural gas to industrial and commercial customers across the country.
Shell Nigeria Gas operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states, serving more than 130 connected customers.
Established in 1998, the company has played a significant role in distributing natural gas to Nigerian industries and commercial businesses.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the business had served customers for more than 25 years, supported by the dedication and expertise of its workforce.
She expressed confidence that the agreement would provide a stronger platform for the business to pursue its next phase of growth under new ownership.
Aiboni also reaffirmed Shell’s commitment to its deep water operations and integrated gas investments in Nigeria.
The divestment forms part of Shell’s broader strategy to streamline its Nigerian portfolio and concentrate capital on areas where it believes it has competitive strengths.
These include deep water oil production and integrated gas operations, particularly its investment in Nigeria LNG Limited.
The transaction covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in Shell Nigeria Gas Limited.
However, completion of the sale remains subject to regulatory approvals and other conditions.
Until the transaction is concluded, Shell Nigeria Gas Group will remain part of Shell and continue its operations and customer services without interruption.
The company’s activities are limited to domestic gas distribution and do not include upstream gas production, liquefied natural gas operations or international gas trading.
Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
The financial details of the transaction were not disclosed.
