Shell Commits $2 Billion to Nigeria’s Offshore Gas Expansion — A Game-Changer for Energy and Investment
In a bold move signaling renewed confidence in Nigeria’s energy landscape, Shell Nigeria Exploration and Production Company Limited (SNEPCo) — a subsidiary of Shell plc — has announced a $2 billion investment in the HI Gas Project, located offshore in the Gulf of Guinea.
This development represents one of the first major offshore investments by Shell since its $2.4 billion divestment of onshore and shallow-water assets earlier this year.
⚡ A Landmark Offshore Project
The HI field, discovered about 40 years ago, lies in 100 meters of water depth within Oil Mining Lease (OML) 144, approximately 50 kilometers off Nigeria’s coast.
The project, which has an estimated recoverable resource volume of 285 million barrels of oil equivalent (mmboe), will produce and supply 350 million standard cubic feet of gas per day (mmscfd) once operational.
Shell is partnering with Sunlink Energies and Resources Limited, which holds 60% ownership, while Shell retains 40%. Together, they plan to deliver gas to Nigeria LNG Limited (NLNG) — a joint venture involving NNPC Limited, Shell, Eni, and TotalEnergies.
️ Project Structure and Design
The HI project will feature:
• A wellhead platform equipped with four production wells,
• A pipeline system connecting the offshore site to Bonny Island,
• A gas processing plant at Bonny, where the gas will be treated for supply to NLNG, and condensates transported to the Bonny Oil and Gas Export Terminal.
Production is targeted to begin by the end of this decade, with the output feeding into NLNG’s Train 7 project, which is currently expanding Nigeria’s liquefied natural gas capacity.
Shell’s Commitment to Nigeria’s Energy Transition
Peter Costello, Shell’s Upstream President, emphasized that the HI Gas Project underlines Shell’s long-term commitment to Nigeria:
“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 gas portfolio while supporting Nigeria’s ambition to become a stronger player in the global LNG market.”
Presidency’s Reaction
Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, confirmed the $2 billion investment value in a statement on X (formerly Twitter).
The Presidency described the decision as a major boost to investor confidence, especially as Nigeria pushes for new investments in gas — the country’s transition fuel for achieving cleaner and more sustainable energy growth.
Context: Why This Matters
This investment comes eight months after Shell exited Nigeria’s onshore operations, a trend followed by ExxonMobil, TotalEnergies, and Eni, which have shifted their focus offshore due to persistent oil theft, sabotage, and community challenges in the Niger Delta.
Environmental activists, however, argue that these divestments also reflect efforts by oil majors to avoid costly environmental litigations linked to past oil spills and degradation.
By focusing offshore, Shell is now positioning itself for greater operational efficiency, lower risk exposure, and alignment with Nigeria’s gas-led industrialization strategy.
Strategic Importance for Nigeria
The HI Gas Project is central to Nigeria’s broader vision of leveraging gas for economic transformation. It aligns with national priorities such as:
• Expanding LNG export capacity,
• Supporting local job creation in construction and operations,
• Attracting foreign investment into the energy sector, and
• Strengthening energy security through stable gas supply.
The project also supports Shell’s global goal of growing its liquefied natural gas (LNG) output by 4–5% annually until 2030, underscoring Nigeria’s continued relevance in Shell’s global portfolio.
Key Takeaways for Investors
• Diversification of Nigeria’s Energy Portfolio: The shift from onshore to offshore operations could enhance production efficiency and profitability.
• Boost to Gas Infrastructure: With Nigeria positioning gas as its transition energy, projects like HI will support long-term LNG exports.
• Increased Foreign Investor Confidence: The Tinubu administration’s engagement with global energy giants may signal a more stable investment climate.
• Job Creation and Economic Growth: The project promises new employment opportunities and economic stimulus, especially around Bonny Island and the Niger Delta region.
In a bold move signaling renewed confidence in Nigeria’s energy landscape, Shell Nigeria Exploration and Production Company Limited (SNEPCo) — a subsidiary of Shell plc — has announced a $2 billion investment in the HI Gas Project, located offshore in the Gulf of Guinea.
This development represents one of the first major offshore investments by Shell since its $2.4 billion divestment of onshore and shallow-water assets earlier this year.
⚡ A Landmark Offshore Project
The HI field, discovered about 40 years ago, lies in 100 meters of water depth within Oil Mining Lease (OML) 144, approximately 50 kilometers off Nigeria’s coast.
The project, which has an estimated recoverable resource volume of 285 million barrels of oil equivalent (mmboe), will produce and supply 350 million standard cubic feet of gas per day (mmscfd) once operational.
Shell is partnering with Sunlink Energies and Resources Limited, which holds 60% ownership, while Shell retains 40%. Together, they plan to deliver gas to Nigeria LNG Limited (NLNG) — a joint venture involving NNPC Limited, Shell, Eni, and TotalEnergies.
️ Project Structure and Design
The HI project will feature:
• A wellhead platform equipped with four production wells,
• A pipeline system connecting the offshore site to Bonny Island,
• A gas processing plant at Bonny, where the gas will be treated for supply to NLNG, and condensates transported to the Bonny Oil and Gas Export Terminal.
Production is targeted to begin by the end of this decade, with the output feeding into NLNG’s Train 7 project, which is currently expanding Nigeria’s liquefied natural gas capacity.
Shell’s Commitment to Nigeria’s Energy Transition
Peter Costello, Shell’s Upstream President, emphasized that the HI Gas Project underlines Shell’s long-term commitment to Nigeria:
“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 gas portfolio while supporting Nigeria’s ambition to become a stronger player in the global LNG market.”
Presidency’s Reaction
Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, confirmed the $2 billion investment value in a statement on X (formerly Twitter).
The Presidency described the decision as a major boost to investor confidence, especially as Nigeria pushes for new investments in gas — the country’s transition fuel for achieving cleaner and more sustainable energy growth.
Context: Why This Matters
This investment comes eight months after Shell exited Nigeria’s onshore operations, a trend followed by ExxonMobil, TotalEnergies, and Eni, which have shifted their focus offshore due to persistent oil theft, sabotage, and community challenges in the Niger Delta.
Environmental activists, however, argue that these divestments also reflect efforts by oil majors to avoid costly environmental litigations linked to past oil spills and degradation.
By focusing offshore, Shell is now positioning itself for greater operational efficiency, lower risk exposure, and alignment with Nigeria’s gas-led industrialization strategy.
Strategic Importance for Nigeria
The HI Gas Project is central to Nigeria’s broader vision of leveraging gas for economic transformation. It aligns with national priorities such as:
• Expanding LNG export capacity,
• Supporting local job creation in construction and operations,
• Attracting foreign investment into the energy sector, and
• Strengthening energy security through stable gas supply.
The project also supports Shell’s global goal of growing its liquefied natural gas (LNG) output by 4–5% annually until 2030, underscoring Nigeria’s continued relevance in Shell’s global portfolio.
Key Takeaways for Investors
• Diversification of Nigeria’s Energy Portfolio: The shift from onshore to offshore operations could enhance production efficiency and profitability.
• Boost to Gas Infrastructure: With Nigeria positioning gas as its transition energy, projects like HI will support long-term LNG exports.
• Increased Foreign Investor Confidence: The Tinubu administration’s engagement with global energy giants may signal a more stable investment climate.
• Job Creation and Economic Growth: The project promises new employment opportunities and economic stimulus, especially around Bonny Island and the Niger Delta region.