Market News

Shell Petroleum B.V. has signed an agreement to sell its full interest in the Shell Nigeria Gas Group to indigenous firm Vaaris Energy Limited.

The deal marks Shell’s exit from domestic gas distribution in Nigeria.

Speaking, Shell’s Country Chair in Nigeria, Elohor Aiboni, said: “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.”

The transaction, which is subject to regulatory conditions and approvals, covers Shell Nigeria Gas Holding B.V. — established in 2019 — which holds all the shares, except for one, in Shell Nigeria Gas Limited (SNG).

Until completion, the Shell Nigeria Gas Group will remain part of Shell and will continue to serve its customers and operate as usual.

Established in 1998, SNG supplies natural gas to industrial and commercial customers and operates around 170km of pipeline infrastructure across Ogun, Abia and Rivers States, serving more than 130 connected customers. SNG does not operate in upstream gas production, liquefied natural gas (LNG), 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 footprint in the country.

Shell said the sale is consistent with its strategy of simplifying its portfolio and concentrating investment in areas where it has competitive strengths, noting that its continued focus on deepwater and integrated gas in Nigeria, including its interest in Nigeria LNG, exemplifies that strategy.