ABUJA, Oct. 23, 2025 — Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, in partnership with Sunlink Energies and Resources Limited, has reached final investment decision (FID) on the HI offshore gas project in Nigeria. The $2 billion development is set to supply feed gas to the Nigeria LNG (NLNG) Train 7 expansion, a critical component of the country’s energy export strategy.
Project Scope and Strategic Importance
The HI field, located in Oil Mining Lease (OML) 144, lies in shallow waters approximately 50 kilometers off the Nigerian coast. Discovered in 1985, the field is now being developed through a joint venture in which Sunlink holds a 60% stake and SNEPCo 40%.
At peak production, the project is expected to deliver 350 million standard cubic feet of gas per day, equivalent to 60,000 barrels of oil equivalent, directly to NLNG’s Bonny Island facility, where Shell holds a 25.6% equity stake.
Shell estimates the recoverable resources from the HI field at approximately 285 million barrels of oil equivalent (mmboe). Production is scheduled to commence before the end of the decade, aligning with Shell’s broader strategy to grow its integrated gas portfolio and support global LNG demand, which is projected to rise steadily through 2030.
Government and Industry Response
The Nigerian government has welcomed the investment as a vote of confidence in the country’s energy sector. President Bola Tinubu praised the project as a “milestone in Nigeria’s journey toward energy security and economic revitalization.”
The HI project follows Shell’s recent commitments to the Bonga deepwater development and reflects its continued focus on deepwater and integrated gas operations in Africa’s largest oil producer.
Economic and Energy Implications
The project is expected to:
- Boost Nigeria’s LNG export capacity, particularly through the long-anticipated Train 7 expansion
- Create local employment opportunities and stimulate supply chain development
- Enhance energy security and generate foreign exchange earnings
Industry analysts view the FID as a strategic move to maintain Nigeria’s competitiveness in the global LNG market amid rising competition from Qatar, the U.S., and East Africa.
Summary: Shell and Sunlink Energies have approved a $2 billion investment in Nigeria’s HI offshore gas project, set to supply 350 million scf/day to NLNG’s Train 7. The project underscores Shell’s commitment to Nigeria’s gas sector and is expected to begin production before 2030.
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Sources: BusinessDay NG BusinessDay News, The Cable TheCable, MSN Africa The Punch | MSN, World Oil World Oil, Premium Times Premium Times.
