Shell Petroleum B.V. has formally announced the sale of its full interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian company.
In a statement issued on Tuesday, Shell confirmed that Vaaris Energy will assume control of its domestic gas distribution business across Nigeria.
The transaction covers Shell Nigeria Gas Holding B.V.—a entity incorporated in 2019 that holds all but one share in SNG Limited—and remains subject to customary regulatory approvals and conditions.
Commenting on the deal, Elohor Aiboni, Shell’s Country Chair in Nigeria, noted that Shell Nigeria Gas has supplied commercial and industrial clients across the country “for more than 25 years, supported by the devotion and competence of its personnel.”
“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,” she said.
The statement clarified that SNG Group will remain part of the enterprise, continue serving its clientele, and maintain normal operations until the deal is officially finalized.
According to Shell, the divestment aligns with its broader strategy to streamline its portfolio and target investments toward sectors where it holds a distinct competitive advantage.
The company noted that this strategic direction is reflected in its continued emphasis on deepwater developments and integrated gas projects in Nigeria, including its equity stake in Nigeria LNG.
Additionally, the statement affirmed that SNG does not participate in upstream gas extraction, LNG production, or international gas trading activities.
Backstory…
Shell’s latest divestment is part of a wider shift in its Nigerian operations that began several years ago. In January 2024, the energy giant announced an agreement to sell its onshore subsidiary,
Shell Petroleum Development Company of Nigeria (SPDC), to the Renaissance consortium as it sought to withdraw from onshore oil production in the Niger Delta and focus on deepwater and integrated gas operations.
The SPDC transaction was completed in March 2025, transferring the onshore business to Nigerian-led ownership.
However, Shell retained other Nigerian interests, including Shell Nigeria Gas, its deepwater operations and a 25.6 per cent stake in Nigeria LNG. The latest agreement therefore extends its restructuring beyond onshore oil production to domestic gas distribution.
Read Also: Leaked Documents Raise Fresh Questions Over Shell Environmental Records
