British oil giant Shell (SHEL.L) has approved the $2 billion development of the HI offshore gas project in Nigeria, in partnership with Sunlink Energies, according to Reuters.
The project is expected to produce 350 million standard cubic feet of gas per day for Nigeria LNG, reinforcing the country’s standing as a key player in global liquefied natural gas (LNG) exports and marking one of Shell’s major offshore investments in Nigeria.
The approval follows a recent transaction in which TotalEnergies sold its 12.5% stake in Oil Mining Lease (OML) 118, home to the Bonga offshore oilfield, to Shell and Eni’s Agip for $510 million.
This acquisition further consolidates Shell’s offshore footprint in Nigeria and positions the company as a central player in Africa’s LNG export market over the next decade.
Discovered in 1985, the HI field lies about 50 kilometres (31 miles) offshore in the Niger Delta basin at a depth of roughly 100 metres.
Production from the field is expected to begin before the end of the decade.
Olu Verheijen, special adviser on energy to the Nigerian president, told Reuters that the project “will supply nearly one-third of the gas required for Nigeria LNG’s planned Train 7 expansion.”
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The ownership structure of Nigeria LNG remains led by the state-owned Nigerian National Petroleum Corporation (NNPC) with a 49% stake, while Shell holds 25.6% as the second-largest shareholder.
Other shareholders include TotalEnergies and Eni, reflecting a collaborative framework for the nation’s LNG operations.
The HI offshore project aligns with Shell’s global strategy to grow its LNG output by 4–5% annually through 2030 in response to rising global demand for cleaner energy.
It also follows significant portfolio restructuring by major oil companies operating in Nigeria.
In March 2025, Shell sold its onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a Nigerian-led energy consortium, for $2.4 billion, ending nearly a century of onshore operations.
Similarly, Eni sold its Nigerian Agip Oil Company Ltd (NAOC) to Oando PLC in August 2024 for about $783 million, while retaining its offshore and LNG interests.
These moves underscore a clear strategic shift by international oil majors toward offshore and integrated gas projects in Nigeria.
As the nation’s LNG sector continues to expand, the HI offshore development highlights Nigeria’s growing importance in the global energy supply chain and reaffirms sustained foreign investment in Africa’s offshore gas industry.
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Image Credit: Reuters
