Shell Petroleum B.V. has signed an agreement to sell its entire interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, as the British energy giant shifts its focus towards deepwater and integrated gas operations in the country.
Gatekeepers News reports that the company announced the agreement on Tuesday, October 13, 2026, saying the transaction would transfer its domestic gas distribution business to the Nigerian firm.
The deal covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in Shell Nigeria Gas Limited.
Shell said the transaction remained subject to regulatory conditions and approvals, adding that the business would continue operating as usual and serving customers until the sale is completed.
Elohor Aiboni, Shell’s country chair in Nigeria, said Shell Nigeria Gas had served industrial and commercial customers in the country for more than 25 years.
“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.
Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers and operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.
The company serves more than 130 connected commercial and industrial customers. It does not engage in upstream gas production, liquefied natural gas (LNG) operations or international gas trading.
Vaaris Energy, the buyer, is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country. The financial terms of the transaction were not disclosed.
Shell said the sale was consistent with its strategy to simplify its business portfolio and concentrate investment in areas where it has competitive strengths.
In Nigeria, the company intends to maintain its focus on deepwater oil and gas production and integrated gas operations, including its interest in Nigeria LNG, which exports liquefied natural gas to international markets.
The agreement follows Shell’s earlier move to exit its onshore oil production business in the Niger Delta. In 2024, the company agreed to sell its onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited, to the Renaissance consortium.
The latest transaction marks another change in the ownership of Nigeria’s energy assets as international oil companies streamline their portfolios and Nigerian firms expand their participation in the sector.
However, Shell Nigeria Gas will remain under Shell’s ownership until the necessary approvals are obtained and the transaction is completed.
