Shell has agreed to sell its entire stake in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy, marking another step in the oil major’s strategy to streamline its global portfolio while maintaining its focus on key oil and gas operations.
The deal covers Shell Nigeria Gas Group, which operates a domestic gas distribution business in Nigeria. The companies have not disclosed the financial terms of the transaction.
The sale aligns with Chief Executive Officer Wael Sawan’s broader efforts to simplify Shell’s business and prioritise investments in oil and gas projects offering stronger returns.
Despite the divestment, Shell says Nigeria remains a strategic market, particularly in deepwater exploration and integrated gas operations.
“Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria,” said Elohor Aiboni, Shell’s Country Chair in Nigeria.
Vaaris Energy is a privately owned Nigerian energy company with interests spanning the oil and gas value chain and an established operational presence in the country. The acquisition will expand its position in Nigeria’s domestic gas distribution market.
The transaction comes as Shell continues to adjust its energy portfolio. On October 7, the company raised its third-quarter integrated gas production forecast to between 740,000 and 780,000 barrels of oil equivalent per day, up from its previous estimate of 570,000 to 630,000 barrels per day.
The divestment underscores Shell’s evolving investment priorities in Nigeria, where it continues to pursue opportunities in deepwater and integrated gas while transferring its domestic gas distribution business to a local energy player.
