Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has approved a $2 billion Final Investment Decision (FID) for the HI offshore gas project in Oil Mining Lease (OML) 144.
The decision, taken in partnership with Sunlink Energies and Resources Limited, represents a $2 billion investment aimed at unlocking the HI field’s estimated 285 million barrels of oil equivalent (mmboe) and delivering up to 350 million standard cubic feet of gas per day (MMscf/d) to the domestic and export markets.
The HI field, discovered in 1985, is situated in shallow offshore waters approximately 50 kilometres from the Nigerian coast and about 100 metres deep.
The project will significantly expand Nigeria’s gas supply to the Nigeria LNG (NLNG) facility, supporting the country’s growing ambition to position natural gas as a key transition fuel for industrial growth and energy export.
According to project details released by both partners, Sunlink Energies and Resources Limited will hold a 60 percent equity stake, while SNEPCo will retain 40 percent.
The FID underscores Shell’s commitment to Nigeria’s gas sector and its strategy to enhance upstream gas production for both domestic and global LNG markets.
Shell said the investment aligns with its integrated gas strategy, which targets annual LNG volume growth of 4 to 5 percent through 2030. The HI development is designed to boost supply reliability to NLNG’s existing trains and future expansions.
Peter Costello, Shell’s Upstream Director, described the project as a milestone in Shell’s collaboration with indigenous partners to strengthen Nigeria’s energy security.
“This decision reflects our long-term confidence in Nigeria’s gas potential and our support for the government’s efforts to advance gas-based industrialisation,” he said.
Industry analysts note that the project could attract additional foreign direct investment (FDI) into Nigeria’s gas sector, particularly as energy companies diversify their portfolios toward cleaner, lower-carbon fuels. The HI field’s gas production will support electricity generation, industrial feedstock, and LNG exports, creating long-term value across the gas value chain.
The project is expected to commence early development activities immediately following the FID, with first gas production targeted before the end of the decade. Once operational, it will rank among the country’s most productive offshore gas assets, reinforcing Shell’s position as a key driver of Nigeria’s integrated gas development agenda.
Shell’s decision comes amid renewed momentum in Nigeria’s upstream sector following regulatory reforms and improved security in producing regions. The government has repeatedly emphasized gas as a cornerstone of its energy transition framework, targeting increased gas utilization under the Decade of Gas initiative.
With this latest $2 billion commitment, Shell deepens its partnership with local operators and strengthens Nigeria’s capacity to monetize its abundant gas reserves through sustainable, high-impact projects that support both domestic energy needs and export growth.