Shell signed an agreement on Tuesday 13 October to sell its entire stake in Shell Nigeria Gas Group to Nigerian company Vaaris Energy, a transaction that would transfer a distribution network supplying more than 130 industrial and commercial customers. The price has not been disclosed, and the transaction remains subject to regulatory approvals.
The agreement covers Shell Nigeria Gas Holding B.V., a structure created in 2019 that holds all shares except one in Shell Nigeria Gas Limited. Until the conditions of the sale are met, the company will remain within the Shell group and continue its operations with its customers, according to the group.
Founded in 1998, Shell Nigeria Gas operates about 170 kilometres of pipelines in the states of Ogun, Abia and Rivers. Its activities are limited to domestic natural gas distribution and do not include upstream production, liquefied natural gas or international trading.
Vaaris Energy is a private Nigerian company present in several segments of the oil and gas value chain.
The sale is part of Shell's strategy to simplify its portfolio. In Nigeria, the group retains deepwater and integrated gas operations, including its stake in Nigeria LNG.