Shell Invests $2 Billion in new offshore Offshore Gas Project in Nigeria
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a final investment decision on the HI gas development project, located offshore Nigeria. The move, made in partnership with indigenous firm Sunlink Energies and Resources Limited, will see a $2 billion investment in the shallow-water HI field situated within Oil Mining Lease (OML) 144.
The HI gas project is structured as a joint venture, with Sunlink holding a 60% stake and SNEPCo retaining 40%. Originally discovered in 1985, the HI field lies approximately 50 kilometres from the Nigerian coastline in waters about 100 metres deep. According to Shell, the project’s recoverable resources are estimated at around 285 million barrels of oil equivalent (mmboe).
Shell stated that production from the HI project is anticipated to begin before the end of the decade. The project is also aligned with NLNG’s Train 7 expansion initiative, which aims to boost the capacity of its Bonny Island terminal. Shell noted that increasing gas supply to NLNG supports its strategy to grow global LNG volumes by 4% to 5% annually through 2030.
In addition to strengthening Nigeria’s role in the global LNG market, the HI project is expected to contribute to the country’s broader economic development objectives—particularly through job creation in both construction and operational phases.
Peter Costello, Shell’s Upstream Director, highlighted the significance of the FID, saying it reaffirms Shell’s commitment to Nigeria’s energy sector, especially in deepwater and integrated gas developments.
“This upstream project will help Shell grow our leading Integrated Gas portfolio while supporting Nigeria’s ambitions to play a greater role in the global LNG space,” Costello said.
The decision marks a major step forward in Nigeria’s efforts to monetize its gas resources and strengthen its position in the global energy landscape.
