• The first discovery was made in 1985, with Shell joining 20 years later, after Sunlink had farmed out a 40% equity stake.

• A final investment decision has been reached for the $2 billion HI gas project, targeting first production before 2030.

• The HI field is expected to supply 350 million standard cubic feet per day (mmscf/d) to Nigeria LNG’s Train 7, supporting national gas expansion goals.

Shell Nigeria Exploration and Production Company Limited, a subsidiary of Shell plc, and Nigerian energy company Sunlink Energies and Resources Limited have reached a final investment decision on the HI gas field, almost 40 years after its discovery. The offshore development, located in Oil Mining Lease 144 about 50 kilometers off the Nigerian coast, is among the most significant gas projects approved under the country’s current efforts to expand production and boost exports through the Nigeria LNG complex.

Under the joint venture, Sunlink holds a 60% operating stake, while Shell retains a 40% stake. The partners estimate total spending at about $2 billion, covering subsea infrastructure, a wellhead platform, and pipelines linking the field to onshore processing facilities at Bonny Island. At full capacity, the field is expected to produce approximately 350 million standard cubic feet of gas per day, along with associated condensates, equivalent to roughly 60,000 barrels of oil equivalent. The gas will be supplied to Nigeria LNG’s Train 7 expansion project, which is designed to add 7.7 million tonnes per year to the terminal’s output.

The HI field was discovered by Shell in 1985 but remained undeveloped due to limited infrastructure and weak commercial incentives for gas. Its recoverable resources are estimated at 285 million barrels of oil equivalent on a P50 basis, according to project documents. Development plans include four production wells tied to a new platform and a multiphase pipeline to Bonny Island, where the gas will be processed before being sent to Nigeria LNG. Condensates will be exported through the Bonny Oil and Gas Terminal.

Production is scheduled to start before the end of the decade, with work expected to begin in 2026 following completion of engineering and regulatory steps. The project supports Nigeria’s “Decade of Gas” policy, launched in 2021 to attract investment and accelerate domestic gas development. Nigeria holds more than 200 trillion cubic feet of proven reserves, but has faced recurring feedstock shortages that have reduced LNG output and limited gas supply for power generation.

Government reforms under the Petroleum Industry Act have improved fiscal conditions for gas projects, including a reduced hydrocarbon tax rate and streamlined approvals. The Nigerian Upstream Petroleum Regulatory Commission cleared the HI project after a fast-track review process. The Presidency described the investment as part of broader measures to strengthen the energy sector and increase foreign direct investment.

Shell said the final investment decision aligns with its strategy to focus on deepwater and integrated gas projects, while scaling back onshore operations in Nigeria. The company finalized the sale of its onshore assets to Renaissance Energy earlier this year for $1.3 billion. “Following recent investment decisions on 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,” said Peter Costello, Shell’s Upstream President, in a company statement.

The HI development is part of Shell’s plan to expand LNG production globally by 4% to 5% annually through 2030 and add more than 1 million barrels of oil equivalent per day from new upstream and gas projects between 2025 and 2030. For Sunlink Energies, the agreement represents a significant milestone in its evolution from a local oilfield services company into a full-cycle exploration and production operator. Founded in 1986 by Dr. Olaniyi Olumide, the company has been involved in several joint ventures, including partnerships with the Nigerian National Petroleum Company Limited on marginal fields.

Sunlink’s majority interest in the HI field complies with the local content requirements set by the Nigerian Content Development and Monitoring Board, which mandates at least 50% indigenous ownership in upstream projects. The company has previously said the development will prioritize Nigerian engineering and manufacturing capacity under the board’s supervision.

The HI gas field is located at a water depth of about 100 meters and is designed to connect directly to existing onshore processing and export infrastructure. Project documents indicate that construction will be phased to align with Nigeria LNG’s expansion schedule, with first gas expected in 2029.

Shell retains its position as one of the largest foreign investors in Nigeria’s gas industry. In addition to its 40% stake in the HI project, the company holds a 25.6% stake in Nigeria LNG and continues to operate deepwater fields, such as Bonga. Sunlink’s participation expands the role of domestic firms in offshore gas projects, a key objective of Nigeria’s current upstream policy. The final investment decision marks a rare example of a long-delayed discovery moving into development, underscoring a gradual improvement in investment conditions for gas projects in the country.

Idriss Linge