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

When completed, the project will 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%), which produces and exports liquefied natural gas (LNG) to global markets. Production is expected to begin before the end of this decade.

“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 our leading 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% 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 100m of water depth around 50km from the shore. The current estimated recoverable resource volumes of the HI project are approximately 285 mmboe (million barrels of oil equivalent).

Key Facts

• The HI project is part of a joint venture between Sunlink Energies and Resources Limited (60%) and SNEPCo (40%).
• The production associated with this project will be reported through Shell’s Upstream segment.
• 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 to 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% 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% probability of the estimate being lower and a 50% probability of 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 to 2030 with a total peak production of more than 1 million barrels of oil equivalent per day (boe/d). This also supports Shell’s intent to grow top line production across our combined Upstream and Integrated Gas business by 1% per year to 2030.
• LNG plays a key role in the energy transition, producing less greenhouse gas emissions than coal when used to generate electricity, and less emissions than petrol or diesel when used for transport fuel.
• 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.

Shell in Nigeria

Shell has invested in businesses in Nigeria for more than 60 years and has interests in several companies that produce, distribute and export oil, gas, liquefied natural gas (LNG) and other energy products.

Shell has invested in businesses in Nigeria for more than 60 years and has interests in several companies that produce, distribute and export oil, gas, liquefied natural gas (LNG) and other energy products.

SPDC – The Shell Petroleum Development Company of Nigeria
The Shell Petroleum Development Company of Nigeria Limited (SPDC) is the pioneer and leader of the petroleum industry in Nigeria. SPDC is the operator of the NNPC/SPDC/Total Energies/NAOC Joint Venture and supplies onshore and shallow water oil and gas to domestic and export market from its operations in the Niger Delta.

SNEPCo - Shell Nigeria Exploration and Production Company
Shell Nigeria Exploration and Production Company Limited (SNEPCo) pioneered deep-water oil and gas production from the Bonga field in the Gulf of Guinea where depths reach more than 1,000 metres. When Bonga began production in 2005, it increased Nigeria’s oil production capacity by 10%. Today, nearly one-third of Nigeria’s deep-water production comes from the Bonga and Erha fields.

Development Company of Nigeria
The Shell Petroleum Development Company of Nigeria Limited (SPDC) is the pioneer and leader of the petroleum industry in Nigeria. SPDC is the operator of the NNPC/SPDC/Total Energies/NAOC Joint Venture and supplies onshore and shallow water oil and gas to domestic and export market from its operations in the Niger Delta.

SNG – Shell Nigeria Gas
Shell Nigeria Gas Ltd is a fully owned Shell company incorporated in 1998 for the downstream distribution of gas to industries in Nigeria. SNG is part of the Shell Energy business line in Nigeria which covers gas, power, renewables and energy solutions for industrial and commercial customers. SNG’s mission is to provide its customers with a clean, reliable, low-cost alternative to liquid fuel, and to assist in building a stronger Nigerian economy. SNG currently operates a growing world class gas transmission and distribution network of over 138km across the country.

Business developments

• Shell Energy Nigeria was established to focus on gas, power, renewables and energy solutions for industrial and commercial customers.
• SNG, the domestic gas distribution entity of the Shell Energy Nigeria business line, continues to expand and has signed agreements to deliver gas to around 165 corporate customers.
• SNG provides gas to more than 130 commercial and industrial customers, at the time of writing. Infrastructure is being built to enable the delivery of gas to new customers.
• SNEPCo, its OML 118 partners and the Nigerian National Petroleum Corporation (NNPC) extended the OML 118 production-sharing contract (PSC) licence for another 20 years, further incentivising development of the OML 118 block and opening opportunities in Nigeria’s deep waters.
• NLNG Train 7 early works, including engineering, procurement and construction activities, have ramped up.
• SPDC completed the sale of its 30% interest in OML 17 for $533 million.
• Shell has announced its intention to reduce its involvement in onshore oil and gas production in Nigeria but will continue to develop its deep-water oil and gas production and its gas supply businesses for domestic use and export.

 KeyFacts Energy: Shell Nigeria country profile