- Safiu Kehinde
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has, in partnership with Sunlink Energies and Resources Limited, sealed a final investment decision (FID) on Nigeria’s HI offshore gas project.
This was disclosed in a statement issued on Wednesday by SNEPCo.
According to the statement, the gas project, when completed, will supply 350 million standard cubic feet (approximately 60 thousand barrels of oil equivalent) of gas per day at peak production to Nigeria Liquefied Natural Gas with Shell owning 25.6% interest.
Production is expected to begin before the end of 2030.
Reacting to the development, Shell’s Upstream President, Peter Costello, said the investment deal which falls under the Bonga deep-water development showcased the company’s commitment to Nigeria’s energy sector.
“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,
“This Upstream 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.” Costello said.
According to the statement, the HI field was discovered in 1985 and lies in 100m of water depth around 50km from the shore.
The current estimated recoverable resource volumes of the HI project are approximately 285 mmboe (million barrels of oil equivalent).
The increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, is reportedly in line with Shell’s plans to grow its global LNG volumes by an average of 4-5% per year until 2030.
Shell maintained that it will also bolster NLNG’s contribution to Nigeria’s national economic development goals, including jobs in construction and operations.