Shell Nigeria Exploration and Production Company Limited, a subsidiary of Shell plc, together with Sunlink Energies and Resources Limited, has taken a final investment decision on the HI gas project offshore Nigeria.

President Bola Tinubu on Tuesday lauded the investment, valued at $2bn.

 According to a statement yesterday, Shell said the project, when completed, would supply 350 million standard cubic feet (approximately 60 thousand barrels of oil equivalent) of gas per day at peak production to Nigeria LNG (NLNG; Shell interest 25.6 per cent), which produces and exports liquified natural gas to global markets.

Production is expected to begin before the end of this decade, the company said.

“Following recent investment decisions related to the Bonga deepwater development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on deepwater and integrated gas. 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,” Shell’s Upstream President, Peter Costello, said.

Shell explained that the increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, was in line with its plans to grow its global LNG volumes by an average of 4-5 per cent per year until 2030.

It would 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 m of water depth around 50 km from the shore. The current estimated recoverable resource volumes of the HI project are approximately 285 million barrels of oil equivalent.

Shell noted that the HI project is part of a joint venture between Sunlink Energies and Resources Limited (60 per cent) and SNEPCo (40 per cent).

The production associated with this project will be reported through Shell’s upstream segment.

It stated, “The project consists of a wellhead platform with four wells, to be installed at the HI field location; a pipeline to transport the multiphase gas onshore at Bonny; and a gas processing plant at Bonny, from where the processed gas will be transported to NLNG and the condensate to the Bonny Oil and Gas Export Terminal.

“The estimated peak production and current estimated recoverable resources presented above are 100 per cent total gross figures. Current estimated recoverable resource volumes are a P50 estimate under the Society of Petroleum Engineers’ Petroleum Resources Classification System. P50 means there is a 50 per cent probability of the estimate being lower and a 50 per cent probability of it being higher.

This project contributes to Shell’s Capital Market Day 2025 commitment to deliver upstream and integrated gas projects coming on stream between 2025 and 2030 with a total peak production of more than one million barrels of oil equivalent per day. This also supports Shell’s intent to grow top-line production across our combined upstream and integrated gas business by one per cent per year to 2030,” the company said.

Shell took a final investment decision on the Bonga North project in December 2024 and recently increased its stake in the Bonga field, “consistent with the company’s intention to be a continued disciplined investor in Nigeria’s energy sector through its Deep Water and Integrated Gas businesses.”

Meanwhile, President Bola Tinubu welcomed Shell’s $2bn FID on the new gas project in the shallow offshore HI Field, in OML 144.

A statement by his spokesman, Bayo Onanuga, added that the new Non-Associated Gas development project will deliver approximately 350 mmscf/d from 2028, equivalent to almost a third of the requirements of the NLNG Train 7 project.

The announcement, it was learnt, brings total significant upstream investment commitments through Final Investment Decisions in Nigeria’s oil and gas sector to over $8bn since Tinubu assumed office in 2023.

The statement read partly, “This investment decision is Nigeria’s third major oil and gas FID in the past 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project. It marks yet another milestone in Nigeria’s journey to unlock its abundant gas resources for domestic and export use. The Ubeta and HI gas projects can supply up to 15 per cent of the NLNG’s total feedgas requirements, covering Trains 1 to 7.

“Since 2024, President Tinubu has issued targeted directives as part of the industry reform coordinated by the Office of the Special Adviser to the President on Energy. These directives have introduced unprecedented fiscal incentives, regulatory clarity, operating process simplification, cutting contracting costs, and reducing approval cycle times. These reforms, now embedded in legislation, have restored investor confidence and repositioned Nigeria as a competitive investment destination.

“The three landmark FIDs, the HI and Ubeta gas projects and Bonga North deepwater, represent blueprint projects selected and unlocked by the Federal Government to drive the implementation of the presidential directives. Specifically, the development of the HI gas field, discovered four decades ago, in 1985, is being enabled by Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.”

The Special Adviser to President Tinubu on Energy, Olu Verheijen, said, “With the Ubeta FID and now the HI FID, we have secured the gas supply needed to make NLNG Train 7 not just possible, but transformative. These projects will significantly strengthen the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use, reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households. And this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow.”

Tinubu was said to have reiterated his administration’s commitment to creating an enabling environment for Nigeria’s domestic and foreign investors.

“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 was quoted as saying.

Meanwhile, President Bola Tinubu on Tuesday hailed Shell’s $2bn Final Investment Decision on a new offshore gas project as proof that global confidence in Nigeria’s energy sector is rebounding under his administration’s reform-driven investment agenda.

“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,” the statement quoted Tinubu as saying.

“Since 2024, President Tinubu has issued targeted directives as part of the industry reform coordinated by the Office of the Special Adviser to the President on Energy.

“These directives have introduced unprecedented fiscal incentives, regulatory clarity, operating process simplification, cutting contracting costs, and reducing approval cycle times.

“These reforms, now embedded in legislation, have restored investor confidence and repositioned Nigeria as a competitive investment destination,” the statement read.

Special Adviser to President Tinubu on Energy, Olu Arowolo Verheijen, said, “With the Ubeta FID and now the HI FID, we have secured the gas supply needed to make NLNG Train 7 not just possible, but transformative.

“These projects will significantly strengthen the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use, reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households.

“And this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow.”

Shell’s Upstream President, Peter Costello, said, “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.

“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.”

According to the Presidency, the NLNG Train 7 project will expand Nigeria’s LNG production capacity by eight million metric tonnes annually, 35 per cent of current production.

“In addition to reinforcing Nigeria’s position in the global gas supply value chain, it will expand domestic gas supply, support job creation, catalyse economic growth, and stimulate SMEs in host communities,” said Onanuga.

Tinubu reiterated his administration’s commitment to creating an enabling environment for Nigeria’s domestic and foreign investors.