After more than twenty years of contributing to Nigeria’s industrial and commercial sectors, Shell Petroleum B.V. has withdrawn from the domestic gas distribution market in Nigeria.
In a statement received today, Shell said it has reached an agreement to sell its entire stake in the Shell Nigeria Gas Group to the local company Vaaris Energy Limited, signifying its departure from the sector.
Shell’s Country Chair in Nigeria, Elohor Aiboni, was quoted as saying: “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 transaction, which is subject to regulatory conditions and approvals, covers Shell Nigeria Gas Holding B.V. — established in 2019 — which holds all the shares, except for one, in Shell Nigeria Gas Limited (SNG).
“Until completion, the Shell Nigeria Gas Group will remain part of Shell and will continue to serve its customers and operate as usual,” the company stated.
Established in 1998, SNG supplies natural gas to industrial and commercial customers and operates around 170 km of pipeline infrastructure across Ogun, Abia and Rivers States, serving more than 130 connected customers.
SNG does not operate in upstream gas production, liquefied natural gas (LNG), or international gas trading.
“The sale is consistent with Shell’s focus on simplifying its portfolio and concentrating investment in areas where it has competitive strengths. In Nigeria, our continued focus on Deepwater and Integrated Gas, including our interest in Nigeria LNG, exemplifies our strategy,” the company stated.
Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational footprint in the country.
