Peter Uzoho
Shell Petroleum B.V. has signed an agreement to sell its full interest in the Shell Nigeria Gas Group to Nigerian energy company, Vaaris Energy Limited.
Shell Nigeria Gas operates Nigeria’s domestic gas distribution business and has served industrial and commercial customers for more than 25 years.
Shell’s Country Chair in Nigeria, Elohor Aiboni, announced the transaction Tuesday, saying the deal provides a stronger platform for the business under new ownership, while allowing Shell to focus on its strategic deepwater and integrated gas positions in Nigeria.
“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 in a statement signed by Shell’s Country Communications Manager, Gladys Afam-Anadu.
“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,” Aiboni added.
The transaction is subject to regulatory conditions and approvals. Until completion, the Shell Nigeria Gas Group will remain part of Shell and will continue to serve customers and operate as usual.
Shell Nigeria Gas Limited was established in 1998 and supplies natural gas to industrial and commercial customers. It operates around 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states, serving more than 130 connected commercial and industrial customers.
SNG does not operate in upstream gas production, liquefied natural gas or international gas trading.
The transaction includes Shell Nigeria Gas Holding B.V., established in 2019, which holds all the shares except one in Shell Nigeria Gas Limited.
Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational footprint in the country.
Shell said the sale is consistent with its strategy to simplify its portfolio and concentrate investment in areas where it has competitive strengths.
“In Nigeria, our continued focus on Deepwater and Integrated Gas, including our interest in Nigeria LNG, exemplifies our strategy,” the company said.