SHELL Petroleum B.V. has signed an agreement to sell its full interest in the Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company.
News Point Nigeria reports that Shell announced the deal in a statement on Tuesday, saying the transaction would transfer its domestic gas distribution business in Nigeria to Vaaris Energy.
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The deal, which is subject to regulatory conditions and approvals, covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in SNG Limited.
Speaking on the transaction, 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, supported by the commitment and expertise of its workforce.
“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.
According to the statement, the SNG Group would remain part of the company and continue to serve its customers and operate as usual until the transaction is completed.
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Shell said the sale aligns with its strategy to simplify its portfolio and concentrate investment in areas where it has competitive strengths.
The company added that its continued focus on deepwater and integrated gas operations in Nigeria, including its interest in Nigeria LNG, reflects that strategy.
According to the statement, SNG does not engage in upstream gas production, liquefied natural gas (LNG) or international gas trading.
Established in 1998, SNG supplies natural gas to industrial and commercial customers and operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.
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Vaaris Energy, the prospective buyer, is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
The transaction remains subject to the necessary regulatory conditions and approvals. Until it is completed, the SNG Group is expected to continue its operations and customer services as usual.