Omanghana
Shell Petroleum B.V. has reached an agreement to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, paving the way for its departure from the country’s domestic piped gas distribution market.
The proposed transaction, announced on Tuesday, October 13, remains subject to regulatory approval and other conditions. Financial details have not been disclosed. Shell Nigeria Gas will remain under Shell’s ownership and continue normal operations until the sale is completed.
The business has supplied gas to Nigerian industrial and commercial customers for more than 25 years. Its distribution network comprises approximately 170 kilometers of pipelines across Ogun, Abia and Rivers states, serving more than 130 connected businesses. The acquisition would transfer this established network to Vaaris Energy, which already has interests in Nigeria’s oil and gas industry.
Shell said the planned divestment supports its strategy of simplifying its portfolio and directing investment towards businesses where it holds competitive advantages. Its Nigerian operations will continue to focus on Deepwater production and integrated gas.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the agreement would provide a stronger foundation for the distribution business under new ownership, while allowing Shell to concentrate on its strategic priorities.
The transaction is separate from Shell’s sale of its onshore subsidiary, the Shell Petroleum Development Company of Nigeria, to Renaissance, which was completed in March 2025.
Despite the planned withdrawal from domestic gas distribution, Shell will retain a significant presence in Nigeria through its offshore operations, including the Bonga field, and its 25.6 per cent stake in Nigeria LNG Limited. The latest agreement therefore represents a further shift in the company’s Nigerian investment focus rather than a complete departure from the country.
Source: Omanghana
