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Oil giant Shell said on Tuesday that its subsidiary in Nigeria has taken the final investment decision (FID) for an offshore gas development project with Sunlink Energies and Resources .
Shell Nigeria Exploration and Production Company (SNEPCo) and Sunlink have taken FID on the HI gas project offshore the African country, Shell said in a statement.
When completed, the project will supply 350 million cubic feet of gas per day at peak production to Nigeria LNG which produces and exports liquefied natural gas (LNG) to global markets. Production is expected to begin before the end of this decade, said Shell, which has 25.6 interest in NLNG.
“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,” said Peter Costello, Shell’s Upstream President.
“This upstream project will help Shell grow its Integrated Gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market.”
The increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, is in line with Shell’s plans to grow its global LNG volumes by an average of 4-5 percent per year until 2030.
It will also bolster NLNG’s contribution to Nigeria's national economic development goals, including jobs in construction and operations.
The HI field was discovered in 1985 and lies in 100 metre of water depth around 50km from the shore. The current estimated recoverable resource volumes of the HI project are approximately 285 million barrels of oil equivalent (BOE).
The HI project is part of a joint venture owned 40 percent by SNEPCo and 60 percent by Sunlink Energies and Resources.
In addition to this project, Shell holds an interest in Nigeria’s Bonga field. This deepwater development started producing in 2005, celebrating its one-billionth barrel of crude oil milestone in 2023.
Last December, Shell announced an FID on Bonga North, a subsea tie-back to the FPSO Bonga working at the field.
The company also recently purchased TotalEnergies’ entire 12.5% stake in the OML 118 PSC, an oil mining lease holding the Bonga field.
(Writing by N Saeed; Editing by Anoop Menon)
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