RismadarVoice Reporters
October 15, 2026
Shell Petroleum B.V. has entered into an agreement to sell its entire interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, as part of its ongoing portfolio restructuring.
The proposed transaction will transfer ownership of Shell’s domestic gas distribution business, which has supplied natural gas to industrial and commercial customers across Nigeria for more than 25 years.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the agreement would provide an opportunity for the business to expand under new ownership while allowing Shell to concentrate on its priority investments.
According to Aiboni, the company’s domestic gas operations have benefited from the experience of its workforce and longstanding relationships with industrial customers.
She expressed confidence that the proposed ownership change would support the next phase of the business’s development.
Shell Nigeria Gas Limited, established in 1998, operates approximately 170 kilometres of natural gas distribution pipelines across Ogun, Abia and Rivers states.
The company supplies gas to more than 130 connected industrial and commercial customers, supporting manufacturing and other economic activities that depend on reliable energy supplies.
The proposed divestment also includes Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Shell explained that the agreement aligns with its strategy of simplifying its portfolio and concentrating resources on businesses where it sees stronger long-term investment opportunities.
Following the proposed sale, Shell intends to maintain its presence in Nigeria’s deepwater petroleum operations and integrated gas sector, including its investment in Nigeria LNG Limited.
The company clarified that the transaction does not cover its upstream gas production assets, liquefied natural gas operations or international gas trading activities.
Vaaris Energy Limited, the proposed buyer, operates within Nigeria’s energy sector and has business interests across the oil and gas value chain.
The acquisition would expand its participation in domestic natural gas distribution, subject to the successful completion of the transaction.
Shell said the agreement remains subject to regulatory approvals and other customary closing conditions.
Until those requirements are satisfied and the transaction is completed, Shell Nigeria Gas Group will remain under Shell’s ownership and continue providing services to its existing customers.
The financial terms of the proposed sale were not disclosed in the information released.
