Shell Petroleum B.V. has agreed to sell its entire interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian company, as it prepares to exit Nigeria’s domestic gas distribution business.
The company announced the agreement in a statement on Tuesday, confirming that the transaction covers its gas distribution operations serving industrial and commercial customers across Nigeria.
Shell Nigeria Gas has served industrial and commercial customers in the country for more than 25 years, supporting businesses with their energy needs.
Commenting on the agreement, Shell said the sale would provide a stronger platform for the business to pursue its next phase of growth under new ownership.
“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,” the company said.
The transaction will transfer Shell’s full interest in Shell Nigeria Gas Group to Vaaris Energy, although the financial terms and completion timeline were not disclosed in the statement.
The planned exit marks a change in ownership for a business that has operated in Nigeria’s domestic gas distribution market for more than two decades. Shell, however, says it will continue to focus on strategic deepwater and integrated gas operations in the country.
For Vaaris Energy, the acquisition presents an opportunity to take over an established business with an existing customer base and more than 25 years of operating history.
Further details on the transaction, including its completion and potential implications for customers and employees, were not disclosed.