Shell Exits Nigeria’s Gas Distribution Business, Sells Stake to Vaaris Energy

Shell Exits Nigeria’s Gas Distribution Business, Sells Stake to Vaaris Energy

Shell Petroleum B.V. has agreed to sell its entire interest in the Shell Nigeria Gas Group to indigenous energy company Vaaris Energy Limited, marking another major shift in the international oil giant’s business portfolio in Nigeria.

The agreement, announced on Tuesday, October 13, 2026, covers Shell’s domestic gas distribution business in the country. The financial terms of the transaction were not disclosed in the announcement.

The proposed sale will transfer Shell’s interest in the gas distribution group to Vaaris Energy, a Nigerian-owned company seeking to expand its presence in the country’s oil and gas industry.

The transaction represents another adjustment to Shell’s Nigerian operations as the company focuses on selected oil, gas and integrated energy projects.

Shell’s latest move follows its earlier exit from onshore oil production through the sale of its interest in the Shell Petroleum Development Company of Nigeria Limited (SPDC) to the Renaissance consortium. That transaction was completed in March 2025 after receiving the necessary regulatory approvals.

However, the two transactions involve different parts of Shell’s Nigerian business. The earlier deal covered its onshore oil-producing subsidiary, while the latest agreement concerns its domestic gas distribution operations.

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Following the SPDC sale, Shell retained other interests in Nigeria, including its deepwater oil and gas operations and its participation in Nigeria LNG Limited. The company also continued operating its domestic gas distribution business, which is now expected to come under Vaaris Energy’s ownership once the latest transaction is completed.

Shell said the proposed divestment aligns with its strategy of simplifying its global portfolio and concentrating investment on projects expected to deliver stronger returns.

Elohor Aiboni, Shell’s country chair in Nigeria, said the company would continue to focus on its strategic deepwater and integrated gas positions in the country.

For Vaaris Energy, the proposed acquisition offers an opportunity to strengthen its position in Nigeria’s natural gas market and expand its participation in the domestic energy value chain.

The company is a privately held Nigerian energy business with interests across the oil and gas sector. However, details of its plans for the acquired business, including any operational changes or investment commitments, were not disclosed in the announcement.

The financial value of the transaction and the precise timeline for completion were also not made public in the information available at the time of reporting.

The deal comes as Nigeria seeks to increase domestic gas utilisation, improve energy supply and attract investment into its gas infrastructure. Gas distribution plays an important role in connecting producers with industrial users and other customers that rely on natural gas for their operations.

The implications of the acquisition for Nigeria’s domestic gas market will depend on the completion of the transaction and how Vaaris Energy manages and develops the business under its ownership.

Shell’s agreement with Vaaris therefore marks another change in the ownership of a significant energy asset in Nigeria, while allowing the international company to maintain its focus on other strategic oil and gas interests in the country.