Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has taken a final investment decision (FID) on the $2 billion HI offshore gas project in partnership with Sunlink Energies and Resources Limited.
The project, located in Oil Mining Lease (OML) 144, marks another major stride in Shell’s long-term strategy to expand its Deepwater and Integrated Gas operations in Nigeria.
The HI Gas Project is designed to produce 350 million standard cubic feet of gas per day, equivalent to about 60,000 barrels of oil equivalent at peak output.
The gas will feed the Nigeria LNG (NLNG) plant, where Shell holds a 25.6% stake, boosting its liquefied natural gas production and exports to global markets.
Shell’s Upstream President, Peter Costello, described the project as proof of the company’s continued confidence in Nigeria’s energy sector. “Following recent investment decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas,” he said. “This Upstream project will help Shell grow our leading Integrated Gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market.”
Discovered in 1985, the HI field is estimated to hold 285 million barrels of oil equivalent (mmboe) in recoverable resources. Development of the field is expected to enhance feedgas supply for the NLNG plant’s Train 7 expansion, which aims to raise Bonny Island’s annual LNG production capacity from 22 million tonnes to 30 million tonnes.
Presidential aide on energy, Mrs. Olu Verheijen, commended Shell’s decision, calling it a milestone for Nigeria’s gas-led industrialization agenda. “It is the third major oil and gas FID in the last 18 months, following the Ubeta gas project and Bonga North deepwater, bringing total upstream investment commitments to over $8 billion since President Bola Ahmed Tinubu assumed office in 2023,” she said.
Verheijen emphasized that policy reforms and fiscal incentives are “restoring investor confidence and repositioning Nigeria as a competitive global investment destination.”
The HI project is structured as a joint venture between Sunlink Energies (60%) and SNEPCo (40%). It includes a wellhead platform with four wells, a multiphase gas pipeline to Bonny Island, and a gas processing facility that will deliver feedgas to NLNG and condensates to the Bonny Oil and Gas Export Terminal.
Shell’s latest investment follows its December 2024 FID on the Bonga North project and its increased stake in the Bonga field, reinforcing the company’s disciplined approach to long-term growth in Nigeria’s Deepwater and gas sectors.