Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, and SunLink Energies and Resources Limited have taken a final investment decision (FID) on the $2 billion HI gas project located offshore Nigeria.
This was disclosed in a press statement issued by Shell on Tuesday and seen by Energy in Africa.
The project is expected to deliver up to 350 million standard cubic feet of gas per day (MMCF/D) (equivalent to 60,000 barrels of oil) at peak production to Nigeria LNG (NLNG), where Shell holds a 25.6% interest.
In August, NLNG signed gas supply deals with several joint operators of key gas projects in Nigeria including the SNEPCo–SunLink HI development.
Production from the HI field is anticipated to begin before the end of the decade and will support Nigeria’s growing role in the global liquefied natural gas (LNG) market.
Peter Costello, Shell’s Upstream President, described the decision as a continuation of the company’s strategic investments in Nigeria.
“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.
Olu Verheijen, Special Energy Adviser to President Bola Tinubu says the development marks the third major FID in Nigeria’s oil and gas sector over the last 18 months.
However, the HI project fits into Shell’s global LNG strategy to grow volumes by 4–5% annually until 2030.
What you should know about HI project
The HI field is a Shell-operated conventional gas and condensate development project located in Offshore Mining Licence (OML) 144.
It is a shallow-water field of about 100 metres of water depth and located approximately 50 kilometres offshore. Discovered in 1985, the field holds an estimated recoverable resources of 285 million barrels of oil equivalent (mmboe).
The development includes a wellhead platform with four wells, a pipeline to transport multiphase gas to Bonny Island, and a gas processing plant.
In January 2025, Shell awarded the project’s engineering, procurement, and construction (EPC) contract to China’s Offshore Oil Engineering Company (COOEC).
Gas processed by the project will be routed to NLNG, while condensate will be exported via the Bonny Oil and Gas Export Terminal.
The project is a joint venture between SunLink (60%) and SNEPCo (40%), and production will be reported through Shell’s Upstream segment.
The FID follows Shell’s December 2024 decision on the Bonga North project and its increased stake in the Bonga field, two recent developments that indicate the company’s commitment to Nigeria’s deepwater and integrated gas sectors.
