British oil giant Shell approves $2 billion offshore gas project in Nigeria to boost LNG supply
HI offshore development, in partnership with Sunlink Energies, is expected to produce 350 million standard cubic feet of gas per day for Nigeria LNG, reinforcing the country’s position in global liquefied natural gas (LNG) exports and marking a major offshore investment by Shell in Nigeria.
The project follows a transaction in which TotalEnergies sold its 12.5% stake in Oil Mining Lease 118, which includes the Bonga offshore oilfield, to Shell and Eni’s Agip for $510 million.
This acquisition further strengthens Shell’s offshore presence in Nigeria and positions the company to play a pivotal role in Africa’s LNG export market over the next decade.
The HI field, discovered in 1985, is located approximately 50 kilometres (31 miles) offshore Nigeria in the Niger Delta basin at a depth of around 100 metres. Production is anticipated to begin before the end of the decade.
State-owned Nigerian National Petroleum Corporation (NNPC) retains a 49% stake in Nigeria LNG, with Shell as the second-largest shareholder at 25.6%.
Other shareholders include TotalEnergies and Eni, reflecting a collaborative approach to the country’s LNG operations.
The project supports Shell’s global strategy to increase LNG output by 4–5% annually until 2030, meeting rising international demand for cleaner energy.
In March 2025, Shell sold its onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), to a consortium led by Renaissance, a Nigerian energy group, in a $2.4 billion deal that ended nearly 100 years of onshore operations.
Eni, an Italian multinational energy company reportedly sold its Nigerian Agip Oil Company Ltd (NAOC) to Oando PLC in August 2024 for approximately $783 million while retaining offshore and LNG operations.
These transactions reflect a strategic shift by international oil majors toward offshore and integrated gas projects in Nigeria.
Source: Africabusinessinsider