Shell
By Iyunade Grace
Shell has approved a $2 billion investment in a new offshore gas project in Nigeria, marking the country’s third major oil and gas Final Investment Decision (FID) in the last 18 months. The project, located in the HI Field, OML 144, will deliver approximately 350 million standard cubic feet of gas per day from 2028, supporting Nigeria’s LNG production and export ambitions.
The project is a joint venture between Shell and Sunlink Energies and Resources Limited, with Shell holding a 40% interest and Sunlink owning 60%. The investment will unlock significant value from Nigeria’s gas reserves, providing much-needed energy for the domestic market and LNG production. The gas will supply Nigeria LNG Limited’s Train 7 project, increasing LNG production capacity by 8 million metric tonnes annually.
The project is expected to create jobs, stimulate economic growth, and support Small and Medium-sized Enterprises (SMEs) in host communities. The development will also involve constructing subsea wells, pipelines, and gas processing facilities. Once operational, the project will play a crucial role in Nigeria’s energy landscape, contributing to the country’s economic development and supporting its energy transition goals.
The investment brings the total upstream investment commitments in Nigeria’s oil and gas sector to over $8 billion since President Tinubu assumed office in 2023. President Tinubu welcomed the investment, describing it as a validation of his administration’s reform efforts and a signal that Nigeria is open for business. The project aligns with Nigeria’s plans to expand LNG production, attract foreign investment, and diversify hydrocarbon revenues .
