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.
HI Field Location and Production
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.
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.
Ownership Structure
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.
Strategic Context and Divestments
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.
Nigeria’s Growing LNG Sector
With Nigeria’s energy sector poised for growth, the HI project highlights the country’s strategic importance in global LNG supply chains and underscores continued foreign investment in Africa’s offshore gas resources.
