Shell Agrees Nigerian Gas Exit: Vaaris Energy to Buy Shell Nigeria Gas Group, Price UndisclosedShell Agrees Nigerian Gas Exit: Vaaris Energy to Buy Shell Nigeria Gas Group, Price Undisclosed
Key Highlights
- Shell has agreed to sell its full interest in Shell Nigeria Gas Group, its domestic gas distribution business, to privately held Nigerian energy company Vaaris Energy, with the price undisclosed.
- The sale fits chief executive Wael Sawan's push to simplify Shell's portfolio, while the company says it will stay focused on deepwater and integrated gas positions in Nigeria.
- Neither company has disclosed closing conditions, regulatory approvals or a completion date, so the effect on Nigerian gas customers and supply contracts is not yet known.
Shell has agreed to sell its entire interest in Shell Nigeria Gas Group, its domestic gas distribution business in Nigeria, to privately held Vaaris Energy, as the oil major trims its African portfolio.
Shell announced on Tuesday 13 October that it had signed the agreement. Neither company disclosed the price, and the report on the deal does not mention closing conditions, regulatory approvals or an expected completion date.
A portfolio trim, not an exit from Nigeria
The sale is part of chief executive Wael Sawan's effort to simplify Shell's portfolio, moving away from renewables towards oil and gas projects with better expected returns. Shell Nigeria's country chair, Elohor Aiboni, said the company "continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria."
That statement draws a line between the two parts of Shell's Nigerian business. Domestic gas distribution, which supplies industrial and commercial customers, is being sold, while deepwater production and integrated gas, including liquefied natural gas, remain core.
Earlier this month Shell raised its third-quarter integrated gas production forecast to 740,000 to 780,000 barrels of oil equivalent a day, up from 570,000 to 630,000. The upgrade shows where the company is directing capital.
Who Vaaris Energy is
Vaaris Energy is a privately held Nigerian company with interests across the oil and gas value chain and an existing operational footprint in Nigeria. The report gives no further detail on its ownership, founding date or size, so its capacity to fund and run a gas distribution network has not been independently established.
For Nigerian businesses that buy gas through the network, the open questions are whether existing supply contracts and tariffs carry over to the new owner and whether regulators attach conditions to the transfer.
As Mwenendo earlier reported, Nigeria's diesel prices have risen 82.7% since February, which has pushed manufacturers to look for cheaper gas-fired power and heat.
Part of a wider ownership shift
The deal follows a pattern of energy assets changing hands across the continent. Mwenendo earlier reported on how Oryx Energies changed owners in a reported KSh 129.75B ($1B) management buyout, while Nigeria's central bank has been easing policy after a 3.50-point cut to 23.00%, which lowers borrowing costs for local buyers of such assets.
Readers should treat the Vaaris deal as signed but not completed until the parties confirm approvals and closing.
In Summary
- Who is selling and who is buying?
- Shell is selling its full interest in Shell Nigeria Gas Group to privately held Nigerian company Vaaris Energy.
- What is being sold?
- Shell's domestic gas distribution business in Nigeria; the price was not disclosed.
- When was it announced?
- Shell announced on Tuesday 13 October 2026 that it had signed the agreement.
- Where does the business operate?
- Nigeria.
- Why is Shell selling?
- Chief executive Wael Sawan is simplifying the portfolio, and Shell says it remains focused on deepwater and integrated gas in Nigeria.
- What is still unknown?
- The price, closing conditions, regulatory approvals and completion date have not been disclosed.