Shell Plc has agreed to sell its entire stake in Shell Nigeria Gas Group, which operates a domestic gas distribution business in Nigeria, to Nigerian energy firm Vaaris Energy.

The oil major announced the transaction on Tuesday, noting that its completion is subject to regulatory approvals and other conditions. The financial details of the deal were not disclosed.

The sale covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in SNG Limited.

The transaction aligns with Shell Chief Executive Officer Wael Sawan’s strategy to streamline the company’s portfolio and focus investments on assets expected to generate higher returns, particularly in the oil and gas sector.

Commenting on the deal, Shell’s Country Chair in Nigeria, Elohor Aiboni, said SNG had provided gas to industrial and commercial customers in the country for more than 25 years, with its operations supported by the dedication 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.

Shell added that SNG Group would continue its normal operations and maintain services to customers until the transaction is completed.

Founded in 1998, SNG supplies natural gas to industrial and commercial customers, operating about 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.

Vaaris Energy is a privately owned Nigerian energy company with interests spanning the oil and gas value chain and an established operational presence in the country.

The deal comes as Shell continues to streamline its global energy portfolio and review its production outlook.