Shell Petroleum B.V. has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, in a deal that will transfer its domestic gas distribution business to new ownership.

The company disclosed the agreement in a statement made available to The PUNCH on Tuesday, noting that the transaction remains subject to regulatory conditions and approvals.

Shell said the sale aligns with its strategy to simplify its portfolio and direct investment towards areas where it has competitive strengths.

Shell’s Country Chair in Nigeria, Elohor Aiboni, said the gas business had supported industrial and commercial customers for more than two decades.

“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,” she stated

Established in 1998, Shell Nigeria Gas Limited operates approximately 170 kilometres of gas pipelines across Ogun, Abia and Rivers states. It supplies natural gas to more than 130 connected commercial and industrial customers.

The transaction also covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in Shell Nigeria Gas Limited.

According to the statement, Shell Nigeria Gas does not undertake upstream gas production, liquefied natural gas operations or international gas trading. Its activities are focused on distributing natural gas within Nigeria.

Shell Nigeria Gas Group will remain part of Shell until the deal is completed. During this period, the business will continue serving customers and operating as usual.

Vaaris Energy Limited, the buyer, is a Nigerian energy company with interests spanning the oil and gas value chain and an existing operational presence in the country.

Following the planned divestment, Shell said its strategic focus in Nigeria would remain on deepwater operations and integrated gas, including its interest in Nigeria LNG.

SOURCE: The PUNCH