Shell signs deal to sell Nigerian gas business

Shell Petroleum B.V. has reached an agreement to sell its entire stake in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited. The distribution of natural gas to industrial and commercial clients in Nigeria was the focus of the company, which announced the deal to The PUNCH. The transaction, pending regulatory approvals, aligns with Shell's strategy to streamline its portfolio and invest in areas with competitive advantages.

Elohor Aiboni, Shell's Country Chair in Nigeria, expressed confidence in the agreement, stating that it offers a stronger foundation for the business's future under new ownership. Shell continues to prioritize strategic Deepwater and Integrated Gas positions in Nigeria. Shell Nigeria Gas Limited, founded in 1998, manages about 170 kilometers of gas pipeline infrastructure across Ogun, Abia, and Rivers states, serving over 130 commercial and industrial customers.

The company is part of Shell Nigeria Gas Holding B.V., established in 2019, which holds nearly all of the shares in Shell Nigeria Gas Limited. The transaction encompasses the company's domestic gas distribution activities, excluding upstream gas production, liquefied natural gas, and international gas trading. Shell Nigeria Gas Group will continue operations until the deal is finalized, serving its existing customers as usual.

Vaaris Energy Limited, a Nigerian energy company with diverse interests in the oil and gas sector, already operates in the country. Shell plans to maintain its focus on deepwater operations and integrated gas ventures, including its interest in Nigeria LNG.