Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, in partnership with Sunlink Energies and Resources Limited, has announced the final investment decision (FID) on the HI Gas Project offshore Nigeria.
A statement by Shell on Tuesday said that, upon completion, the project will deliver 350 million standard cubic feet of gas per day — equivalent to about 60,000 barrels of oil equivalent — at peak production to Nigeria LNG (NLNG), in which Shell holds a 25.6% interest.
The NLNG plant produces and exports liquefied natural gas (LNG) to markets around the world.
“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,” Peter Costello, Shell’s Upstream President, was quoted as saying in the statement.
“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,” he added.
The HI field, discovered in 1985, is estimated to hold approximately 285 million barrels of oil equivalent (mmboe) in recoverable resources.
According to Shell, development of the project is expected to significantly boost feedgas supply to the NLNG plant, particularly its Train 7 expansion, which aims to increase Bonny Island’s annual production capacity from 22 million to around 30 million tonnes of LNG.
In a swift reaction to the Shell’s announcement, the Special Adviser to the President on Energy, Mrs Olu Verheijen, hailed the decision as one that will unlock
“Nigeria’s vast gas potential to drive industrialization, create jobs, and power a cleaner, more prosperous future.”
She added, “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 noted further that the projects are proof that targeted policy reforms, fiscal incentives, and streamlined processes are “restoring investor confidence and repositioning Nigeria as a competitive global investment destination.”