Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to privately held Nigerian energy company Vaaris Energy, marking another step in the British oil major’s efforts to streamline its operations and focus on higher-return assets.
The financial terms of the transaction, announced Tuesday, were not disclosed. The sale remains subject to regulatory approvals.
Shell Nigeria Gas, established in 1998, operates approximately 170 kilometers of gas pipelines across Nigeria’s Ogun, Abia and Rivers states, supplying more than 130 industrial and commercial customers. The business does not participate in upstream production or LNG exports.
The divestment follows Shell’s March 2025 sale of its Nigerian onshore oil subsidiary to Renaissance Africa Energy, ending decades of direct involvement in Niger Delta onshore oil production.
Shell has instead been expanding its deepwater and LNG interests. In November 2025, the company increased its stake in the offshore Bonga field from 55% to 65%. It also approved the HI offshore gas project, expected to supply 350 million cubic feet of gas per day to Nigeria LNG at peak production.
The transaction also strengthens Vaaris Energy’s position in Nigeria’s energy sector. The company previously agreed to acquire TotalEnergies’ 10% interest in the Renaissance joint venture, further expanding its exposure to assets formerly held by international oil majors.
Shell maintains a 25.6% interest in Nigeria LNG and continues to prioritize offshore developments under CEO Wael Sawan’s strategy of simplifying the company’s global portfolio.
The latest sale underscores the growing role of domestic operators in Nigeria’s energy industry as international majors shift investment toward large-scale offshore oil and gas projects.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
