Shell announced on 14 October it has made a final investment decision (FID) on the HI field gas project offshore Nigeria.
Expected to be completed before the end of the decade, the shallow-water project will supply 350 MMscf/D (about 60,000 BOE/D) at peak production to support Nigeria’s liquefied natural gas (LNG) exports.
The Nigerian government valued the project at about $2 billion. It is being developed under a joint venture between Sunlink Energies and Resources Ltd. (60%) and Shell ‘s Nigerian subsidiary (40%).
Shell said the FID reaffirms its long-term commitment to the region, building on its decision last year to develop new subsea tieback wells at the Bonga deepwater project.
“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,” said Peter Costello, upstream president for Shell.
According to Shell, the HI field holds an estimated recoverable resource of about 285 million BOE. The field was discovered in 1985 and lies in a water depth of about 100 m and is around 50 km off Nigeria’s coast.
The project includes a wellhead platform with four wells along with a pipeline to transport the multiphase gas to onshore facilities.
Gas will flow to Nigeria LNG (NLNG), in which Shell holds a 25.6% interest, as part of an expansion project at the Bonny Island LNG terminal. A new gas processing plant will be built on Bonny Island, with the processed gas sent to NLNG and the condensate to an oil and gas export terminal.
Shell said the HI field project supports its plan to expand its LNG capacity by an average of 4 to 5% a year through 2030 and to add new projects with a combined peak production of more than 1 million BOE/D by the end of the decade.