Shell Commits $2 Billion to HI Gas Project Offshore Nigeria
Shell Nigeria Exploration and Production Company Limited (SNEPCo), in partnership with Sunlink Energies and Resources Limited, has announced a final investment decision (FID) for the HI gas project located in the shallow waters of Oil Mining Lease (OML) 144. The commitment of approximately $2 billion will fund the development of a non-associated gas field, with production expected to begin by 2028.
At peak production, the project is designed to supply 350 million standard cubic feet of gas per day to the Nigeria LNG (NLNG) facility on Bonny Island. This output is equivalent to nearly one-third of the gas feedstock required for NLNG’s Train 7 expansion project, which aims to boost Nigeria’s LNG production capacity by 35%.
The investment marks the third major final investment decision in Nigeria’s oil and gas sector in the last 18 months, following the Ubeta gas project and the Bonga North deepwater development. Collectively, these projects have brought total upstream investment commitments to over $8 billion since President Bola Ahmed Tinubu took office in May 2023.
President Tinubu’s administration has attributed this surge in investment to its targeted policy reforms, including fiscal incentives, regulatory clarity, and streamlined approval processes coordinated by the Office of the Special Adviser on Energy. The HI field, discovered in 1985, is being enabled specifically by Presidential Directive 40, which introduced a competitive fiscal framework for non-associated gas projects.
Shell’s Upstream President, Peter Costello, stated that the decision reinforces the company’s “continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas,” and supports Nigeria’s ambition to become a more significant player in the global LNG market.
The project is expected to enhance Nigeria’s LNG export reliability, expand domestic LPG supply for cleaner cooking, reduce import dependency, boost foreign exchange earnings, and stimulate job creation and economic growth.
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