Shell PLC has taken a Final Investment Decision (FID) on a $2 billion offshore gas project in Nigeria, signaling renewed momentum in the country’s energy sector reform. The HI gas field, part of Oil Mining Lease 144 about 50 kilometers offshore in roughly 100 meters of water, was discovered in 1985 and holds estimated recoverable resources of about 285 million barrels of oil equivalent. It is jointly developed with Sunlink Energies, which holds 60 percent, and Shell Nigeria Exploration and Production Company with 40 percent, as reported by Shell.
At peak production, the project will supply 350 million standard cubic feet of gas per day to Nigeria LNG, contributing nearly one third of the feedstock needs for the Train 7 expansion. First gas is expected before 2030. The infrastructure plan includes a wellhead platform with four wells, a gas pipeline to shore at Bonny, and a processing plant at Bonny from where processed gas will go to Nigeria LNG and condensate to the Bonny Oil and Gas Export Terminal.
Nigeria’s President Bola Tinubu welcomed the investment decision, saying it reaffirms investor confidence in his administration’s reforms. He noted that this is Shell’s second major upstream investment decision in the past year following approvals such as the Ubeta gas project and the Bonga North deepwater development. With this project, upstream investment decisions in Nigeria under his presidency have surpassed $8 billion.
Analysts view the HI project as a strategic move that strengthens Nigeria’s position in the global LNG market, improves domestic gas supply, and boosts foreign exchange earnings. However, success will depend on execution, ensuring the infrastructure is built on schedule, managing costs, and maintaining regulatory stability.
