Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a Final Investment Decision (FID) on the HI offshore gas project in Nigeria, marking a significant $2 billion investment in the country’s energy sector.
The decision, made in partnership with Sunlink Energies and Resources Limited, covers the development of the HI field, located in Oil Mining Lease (OML) 144. The shallow offshore field, discovered in 1985, lies at a water depth of 100 metres and about 50 kilometres off the coast. Under the joint venture structure, Sunlink holds a 60 percent interest, while SNEPCo retains 40 percent.
According to Shell, the HI project contains an estimated 285 million barrels of oil equivalent (mmboe) in recoverable resources. Once completed, it is expected to deliver 350 million standard cubic feet of gas per day approximately 60,000 barrels of oil equivalent to Nigeria LNG (NLNG), where Shell holds a 25.6 percent interest. Production is expected to commence before the end of this decade.
Shell said the project will contribute to Nigeria’s LNG output through the ongoing NLNG Train 7 expansion, which aims to increase the Bonny Island terminal’s capacity. The company added that the investment aligns with its global strategy to expand liquefied natural gas (LNG) volumes by 4–5 percent annually through 2030, while supporting Nigeria’s economic growth through job creation in construction and operations.
Shell’s Upstream President, Peter Costello, described the move as a testament to the company’s long-term commitment to Nigeria’s energy sector.
“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,” Costello said.
The development follows Shell’s December 2024 FID on the Bonga North Deepwater Project, reinforcing its renewed investment drive in Nigeria’s oil and gas industry.
Reacting to the announcement, President Bola Tinubu welcomed the $2 billion investment, calling it a validation of his administration’s economic reforms.
“This major FID announcement by Shell, their second in one year, is a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment,” Tinubu said in a statement issued by Bayo Onanuga, his Special Adviser on Information and Strategy.
President Tinubu reiterated his government’s commitment to creating an enabling environment for both domestic and foreign investors in Nigeria’s energy sector.