Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, together with Sunlink Energies and Resources Limited, has taken a final investment decision (FID) on the HI gas project offshore Nigeria. The decision was announced on October 14, 2025, from London.

Project Production and Timeline

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), in which Shell holds a 25.6% interest. NLNG produces and exports liquefied natural gas (LNG) to global markets. Production is expected to begin before the end of this decade.

The HI field was discovered in 1985 and lies at a depth of 100 meters, around 50 kilometers from the shore. The current estimated recoverable resource volumes of the HI project are approximately 285 million barrels of oil equivalent (mmboe).

Project Structure and Infrastructure

The HI project operates as a joint venture between Sunlink Energies and Resources Limited, which holds a 60% stake, and SNEPCo, which holds 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 the Bonny processing facility, the processed gas will be transported to NLNG, and the condensate to the Bonny Oil and Gas Export Terminal.

Strategic Integration with Shell's Growth Plans

The increase in feedstock to NLNG will be delivered via the Train 7 project that aims to expand the Bonny Island terminal's production capacity. This aligns with Shell's plans to grow its global LNG volumes by an average of 4-5% per year until 2030. Peter Costello, Shell's Upstream President, stated that the recent investment decisions related to the Bonga deep-water development demonstrate Shell's continued commitment to Nigeria's energy sector, with a focus on Deepwater and Integrated Gas.

He noted that this Upstream project will help Shell grow its leading Integrated Gas portfolio while supporting Nigeria's plans to become a more significant player in the global LNG market.

Broader Corporate Strategy and Economic Impact

The 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. This also supports Shell's intent to grow top line production across its combined Upstream and Integrated Gas business by 1% per year to 2030.

The project will bolster NLNG's contribution to Nigeria's national economic development goals, including jobs in construction and operations. Shell has positioned LNG as playing 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 made a final investment decision on the Bonga North project in December 2024 and increased its stake in the Bonga field, aligning with the company's intention to remain a disciplined investor in Nigeria's energy sector through its Deep Water and Integrated Gas businesses. The estimated peak production and current estimated recoverable resources presented are 100% total gross figures.

Current estimated recoverable resource volumes are a P50 estimate under the Society of Petroleum Engineers' Petroleum Resources Classification System, meaning there is a 50% probability of the estimate being lower and a 50% probability of being higher.

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