British energy giant Shell has announced it has reached an agreement to sell its full stake in Shell Nigeria Gas Group to local energy firm Vaaris Energy Limited as the company continues to scale down its distribution operations in the country.
“Shell Petroleum B.V. has signed an agreement to sell its full interest in the Shell Nigeria Gas Group to Vaaris Energy Limited. Shell Nigeria Gas operates a domestic gas distribution business in Nigeria,” the energy giant said in a statement on Tuesday.
Elohor Aiboni, Shell’s country chair in Nigeria, said the agreement would allow the incoming owners to move the business to the next phase, while noting that Shell would continue to shift its focus from local gas distribution to deep-water exploration.
“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,” Ms Aiboni said.
Meanwhile, the company disclosed that the transaction was still subject to regulatory approval and Shell Nigeria Gas Group would remain part of Shell until the deal was sanctioned.
The transaction is part of Shell’s planned exit from Nigeria’s gas distribution business. In 2025, the company completed the sale of Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance, a consortium of five companies.
“The transaction has been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership. This includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV).
“SPDC’s staff will continue to be employed by the company as it transitions to new ownership,” Shell stated at the time.
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