Shell Signs Deal to Sell Nigeria Gas Business to Vaaris Energy
Shell Petroleum B.V. has signed an agreement to sell its full interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, as the oil major refocuses its investments on strategic businesses.
Elohor Aiboni, Shell’s Country Chair in Nigeria, said the transaction would provide a platform for the domestic gas distribution business to grow under new ownership.
“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,” Aiboni said.
“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.”
Established in 1998, Shell Nigeria Gas (SNG) supplies natural gas to industrial and commercial customers through about 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states. It serves more than 130 connected customers.
The transaction includes Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Shell said the sale was consistent with its strategy of simplifying its portfolio and concentrating investment on areas where it has competitive strengths.
In Nigeria, the company will continue to focus on Deepwater and Integrated Gas, including its interest in Nigeria LNG.
The proposed sale does not include Shell’s upstream gas production, liquefied natural gas (LNG) or international gas trading businesses. Vaaris Energy has interests across the oil and gas value chain and an existing operational presence in Nigeria.
The transaction remains subject to regulatory conditions and approvals. Until completion, Shell Nigeria Gas Group will remain part of Shell and continue to serve its customers and operate as usual. NBET Commences N728.98bn Legacy Debt Payments to GenCos
