Shell Petroleum B.V. has signed an agreement to sell its entire interest in the Shell Nigeria Gas (SNG) Group to Vaaris Energy Limited, a Nigerian energy company. This would transfer Shell’s domestic gas distribution business in Nigeria to local ownership.
Shell announced the deal in a statement on Tuesday. The agreement is subject to regulatory conditions and approvals. It covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in SNG Limited.
Elohor Aiboni, Shell’s country chair in Nigeria, said SNG has served industrial and commercial customers in the country “for more than 25 years, supported by the commitment and expertise of its people”.
“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.
SNG was established in 1998 and supplies natural gas to industrial and commercial customers. It operates about 170 kilometres of pipeline across Ogun, Abia and Rivers states. The company does not engage in upstream gas production, liquefied natural gas (LNG) or international gas trading. Until the transaction is completed, SNG will remain part of Shell and continue to serve customers as usual.
Shell said the sale fits its strategy of simplifying its portfolio and concentrating investment where it has competitive strengths. It said its continued focus on deepwater and integrated gas in Nigeria, including its interest in Nigeria LNG, reflects that approach.
About Vaaris
Vaaris is a relatively new name in Nigeria’s energy sector. Corporate records show that Vaaris Resources JV Co. Limited was incorporated on December 22, 2025. The company was widely reported to be led by Austin Avuru, the former chief executive of Seplat Energy. Seplat grew into Nigeria’s largest independent oil producer under his leadership, and he stepped down in 2020.
The company first drew attention in January 2026, when TotalEnergies said it had signed an agreement to sell Vaaris its 10 percent non-operated stake in the Renaissance joint venture, formerly the Shell Petroleum Development Company (SPDC) JV. That deal followed the collapse of an earlier $860 million sale of the same stake to Chappal Energies, after Nigeria’s upstream regulator withdrew its approval.
The Shell gas sale would give Vaaris a downstream gas distribution business alongside its upstream interests. It would also continue the trend of international oil companies transferring Nigerian assets to local operators.
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