Shell, via its subsidiary Shell Petroleum, has reached an agreement to divest its entire interest in the Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy.
The deal covers Shell Nigeria Gas (SNG), which has operated in Nigeria since 1998 supplying natural gas to industrial and commercial customers.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company manages a pipeline network of around 170km that stretches through the Ogun, Abia and Rivers states, delivering gas to more than 130 commercial and industrial clients.
It does not engage in upstream gas production, liquefied natural gas (LNG) or international gas trading.
Alongside the operating company, the deal encompasses Shell Nigeria Gas Holding, a Netherlands-registered vehicle set up in 2019 that controls all shares in the Nigerian subsidiary except one.
Completion of the transaction is contingent on meeting regulatory requirements and obtaining necessary approvals.
Until the deal closes, the Shell Nigeria Gas Group will continue operating within Shell and maintain normal service to its customers.
The buyer, Vaaris Energy, has operations spanning multiple segments of the oil and gas value chain and an established presence in Nigeria.
Shell stated that the divestment aligns with its strategy to simplify its portfolio and focus investment in areas with competitive strength.
Within Nigeria, the company intends to retain its emphasis on deepwater operations and integrated gas, including its shareholding in Nigeria LNG.
Shell Nigeria country chair 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.”
Since its inception, SNG has operated several distribution systems such as the Agbara-Ota network in Ogun State, the Aba Cluster in Abia State and the Port Harcourt Cluster in Rivers State.
In 2018, the company increased its gas distribution capacity by more than 150%, enabling it to distribute more than 150 million standard cubic feet per day to in excess of 300 potential industrial customers.
Shell recently agreed to acquire a 30% interest in the Bay du Nord project, an offshore oil development in the Flemish Pass basin around 500km from Newfoundland and Labrador in Canada.
