Shell Petroleum B.V. has announced an agreement to sell its entire interest in Shell Nigeria Gas (SNG) to Vaaris Energy Limited, a Nigerian company, in a move that will transfer ownership of its domestic gas distribution business to a local firm.
The company disclosed the transaction in a statement on Tuesday, confirming that the deal covers its full interest in Shell Nigeria Gas, which supplies natural gas to industrial and commercial customers across Nigeria.
Shell Nigeria Gas has operated in the country for more than 25 years, serving businesses that use gas for industrial processes and commercial operations.
Commenting on the agreement, Shell said the business had been supported by the commitment and expertise of its employees throughout its years of operation.
“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,” the company said.
The proposed sale marks a change in ownership for Shell’s domestic gas distribution operations, while the company says it will retain its focus on strategic investments in Nigeria’s deepwater oil and gas sector and integrated gas business.
Vaaris Energy Limited will take over the business under the agreement, although the statement provided did not disclose the financial terms of the transaction or specify when the transfer would be completed.
The deal also does not, on the information available, indicate that Shell is withdrawing from all its Nigerian operations. Rather, the announced transaction concerns its interest in Shell Nigeria Gas, while the company has reaffirmed its focus on other strategic energy assets in the country.
Further details on the completion of the transaction and the arrangements for the business under its new ownership were not included in the announcement.
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