Shell to Nigeria’s gas distribution business
Shell Petroleum B.V. has agreed to sell its entire stake in Shell Nigeria Gas Group to Nigerian firm Vaaris Energy Limited, marking a change in ownership of its domestic gas distribution business.
The company announced the transaction in a statement on Tuesday, saying the agreement covers its gas distribution operations serving industrial and commercial customers in Nigeria.
Shell Nigeria Gas has operated in the country for more than 25 years, supplying gas to businesses and industries, according to the company.
Shell said the sale would provide the business with an opportunity to pursue its next phase of growth under new ownership, expressing confidence in the proposed transition.
The company acknowledged the contributions of its workforce, noting that the business had been sustained over the years by the experience and commitment of its employees.
The transaction comes as Shell continues to reshape its Nigerian operations, with the company stating that its focus in the country remains on strategic deepwater projects and integrated gas activities.
Vaaris Energy, the prospective new owner, is expected to take over Shell's interest in the gas distribution business upon completion of the transaction, subject to the applicable requirements.
Shell did not disclose the financial terms of the agreement in the statement announcing the sale.
