Shell Petroleum B.V. has signed an agreement to sell its entire interest in Shell Nigeria Gas Group, which distributes natural gas to industrial and commercial customers in Nigeria, to Nigerian energy company Vaaris Energy Limited.
The company announced the development in a statement made available to The PUNCH on Tuesday.
According to the company, the transaction, which is subject to regulatory conditions and approvals, forms part of its strategy to simplify its portfolio and concentrate investment on areas where it has competitive strengths.
Shell’s Country Chair in Nigeria, 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,” she stated
Shell Nigeria Gas Limited was established in 1998 and operates about 170 kilometres of gas pipeline infrastructure across Ogun, Abia and Rivers states. The company supplies natural gas to more than 130 connected commercial and industrial 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.
The statement added that Shell Nigeria Gas does not engage in upstream gas production, liquefied natural gas or international gas trading, focusing instead on domestic gas distribution.
Until the transaction is completed, Shell Nigeria Gas Group will remain part of Shell and continue to serve its customers and operate as usual.
Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
Shell said its continued focus in Nigeria would be on deepwater operations and integrated gas, including its interest in Nigeria LNG.