Nigeria’s bold energy reforms are yielding major results as Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, and its partner Sunlink Energies and Resources Limited, have announced a $2 billion Final Investment Decision (FID) for the development of the HI offshore gas field (OML 144).
The project, a major milestone in Nigeria’s gas expansion drive, will supply 350 million standard cubic feet of gas per day to the Nigeria LNG (NLNG) plant—representing nearly one-third of the gas required for NLNG Train 7. The development will boost LNG exports, expand domestic LPG supply, reduce imports, and improve clean cooking access for millions of Nigerian households.
It is the third major oil and gas FID in the last 18 months, following the Ubeta gas project and Bonga North deepwater development, bringing total upstream investment commitments to over $8 billion since President Bola Ahmed Tinubu assumed office in 2023.
“These landmark projects are proof that targeted policy reforms, fiscal incentives, and streamlined processes are restoring investor confidence and repositioning Nigeria as a competitive global investment destination,” the Special Adviser to the Nigerian President on Energy, Olu Arowolo Verheijen, stated.
Announcing the project, Shell’s Upstream President, Peter Costello, said the decision underscores the company’s long-term commitment to Nigeria’s energy future.
“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,” Costello said. “This 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.”
Located about 50 kilometres offshore in 100 metres of water depth, the HI field was discovered in 1985 and holds an estimated 285 million barrels of oil equivalent (mmboe). The joint venture between Sunlink (60%) and SNEPCo (40%) will feature a wellhead platform with four wells, a pipeline to Bonny Island, and a gas processing plant that will feed both the domestic market and the NLNG facility. Production is expected to begin before the end of this decade.
Government officials say the investment reflects the success of Tinubu’s policy and fiscal reforms, which have provided clarity and confidence to international investors. Industry experts also highlight the project’s alignment with Nigeria’s Decade of Gas agenda, which aims to use gas as a transition fuel to power industries, create jobs, and advance cleaner energy access.
Shell noted that the project supports its Capital Market Day 2025 commitment to bring upstream and integrated gas projects onstream between 2025 and 2030, contributing over 1 million barrels of oil equivalent per day to its global output. The company aims to grow its combined upstream and gas production by 1% annually through 2030 and expand global LNG volumes by 4–5% per year.
With the HI gas project, Nigeria continues to strengthen its position as a leading energy investment destination.
