Shell Petroleum B.V. has reached an agreement to transfer its entire interest in the Shell Nigeria Gas Group to Vaaris Energy Limited, marking a planned withdrawal from the company’s domestic gas distribution operations.
The proposed sale concerns a business that supplies natural gas to factories and other commercial users through approximately 170 kilometers of pipeline infrastructure in Ogun, Abia and Rivers states. Shell Nigeria Gas Limited, established in 1998, serves more than 130 connected customers.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the change of ownership was intended to position the distribution company for its next phase while allowing Shell to concentrate on deepwater production and integrated gas interests, including its participation in Nigeria LNG.
The transaction includes Shell Nigeria Gas Holding B.V., which owns virtually all the shares in the operating company. Vaaris Energy is described as a Nigerian business with existing interests and operations across the oil and gas industry.
Shell said the agreement remains conditional on applicable regulatory clearances and other completion requirements. Until the sale is concluded, the gas distribution group will remain within Shell and continue its normal customer operations.
The disposal does not represent Shell’s exit from all Nigerian gas activities. The distribution company is separate from upstream production, liquefied natural gas operations and international gas trading, which were not described as part of the transaction.
For industrial users, continuity of supply and investment in distribution capacity will be important measures of the business under its prospective new owner. Neither a purchase price nor a completion date was disclosed in the supplied announcement.
