Vaaris Energy, a Nigerian oil and gas company, has signed an agreement to acquire Shell Nigeria Gas, marking another step in Shell’s restructuring of its Nigerian operations. The transaction will transfer the gas distribution business to a local operator as the global energy group sharpens its focus on deepwater production and integrated gas.

Shell did not disclose the financial terms of the agreement. The divestment aligns with Chief Executive Officer Wael Sawan’s efforts to streamline the company’s portfolio and concentrate capital on businesses that offer stronger returns, particularly in oil and gas, while reassessing investments across its broader energy operations.

Shell narrows its Nigeria focus

The transaction follows Shell’s withdrawal from onshore oil production in the Niger Delta. In 2024, the company agreed to sell its onshore subsidiary, Shell Petroleum Development Company of Nigeria, to a consortium of local companies. The deal faced regulatory scrutiny and opposition from environmental groups before it was completed.

“Shell continues to focus on strategic deepwater and integrated gas positions in Nigeria,” said Elohor Aiboni, Shell’s country chair in Nigeria. The planned gas distribution sale would further reshape the company’s domestic footprint, shifting ownership of infrastructure serving industrial customers while preserving its focus on other segments of the energy market.

Vaaris builds its Nigerian portfolio

Vaaris Energy, incorporated in December 2025, is focused on acquiring upstream and midstream oil and gas assets in Nigeria. The company is positioning itself around assets with established operating fundamentals and strategic relevance to domestic energy security, as local investors seek a greater role in the country’s petroleum industry.

In January 2026, Vaaris signed a sale and purchase agreement to acquire a 10% nonoperated interest in the Renaissance joint venture in the Niger Delta. The venture, formerly known as the Shell Petroleum Development Company joint venture, covers 15 oil-producing licenses and three gas-producing licenses.

Gas infrastructure drives the deal

Shell Nigeria Gas, established in 1998, distributes natural gas to industrial and commercial customers as an alternative to liquid fuels. Its network includes roughly 150 to 170 kilometers of transmission and distribution pipelines, serving more than 130 industrial and commercial customers across major Nigerian industrial clusters.

The acquisition would give Vaaris a foothold in downstream gas distribution alongside its interests in upstream production. Access to existing pipelines and industrial customers could provide a platform for expanding domestic gas sales as Nigerian businesses seek reliable fuel supplies and the government promotes greater use of the country’s natural gas resources.

Shell maintains its gas ambitions

Shell’s planned divestment comes as the company continues to emphasize integrated gas globally. It recently raised its third-quarter integrated gas production forecast to between 740,000 and 780,000 barrels of oil equivalent per day, up from an earlier range of 570,000 to 630,000 barrels per day.

For Vaaris, the proposed acquisition would expand its position in Nigeria’s energy value chain, connecting its upstream ambitions with infrastructure that delivers gas to end users. The financial terms, completion timetable and any required regulatory approvals were not disclosed in the information provided.