Precious Nwonu, Enugu
Shell Petroleum B.V. has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited as part of efforts to streamline its business portfolio.
The company announced the transaction in a statement on Tuesday, saying the deal would transfer its domestic gas distribution operations in Nigeria to Vaaris Energy, subject to regulatory approvals and other conditions.
The agreement covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in SNG Limited.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said Shell Nigeria Gas had supplied industrial and commercial customers for more than 25 years, supported by its workforce.
She said the agreement would provide a stronger platform for the business to grow under new ownership.
“Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria,” Aiboni added.
The company said Shell Nigeria Gas Group would continue operating normally and serving its customers until the transaction is completed.
Shell explained that the divestment aligns with its strategy to simplify its portfolio and concentrate investments on areas where it has competitive advantages.
Its continued focus on deepwater operations and integrated gas in Nigeria, including its interest in Nigeria LNG, forms part of that strategy.
The company clarified that Shell Nigeria Gas does not operate in upstream gas production, liquefied natural gas or international gas trading.
Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers and operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.
Vaaris Energy is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.