Shell approves Nigerian offshore gas development in partnership with Sunlink

Shell announced on Tuesday that it had approved the development of a gas offshore project in Nigeria with Sunlink Energies. This is the latest investment in a long line of investments made by Shell's Nigerian business.

Shell stated that the HI offshore project will, when completed, supply 350 million cubic feet per day of gas at its peak to Nigeria LNG. Nigeria LNG produces and exports liquefied gas to global markets.

Shell has made this investment to demonstrate its strategy of growing its global LNG business, and strengthening its position in Nigeria. This is despite the challenges it faced over many years and after it sold its Nigerian offshore fields which were plagued by theft and spills.

Shell is the second largest shareholder, with 25,6%. TotalEnergies, Eni and Eni are also shareholders in the LNG terminal.

The HI field is located 50 kilometres off-shore and at a depth of 100 meters. It was discovered in 1985. Production should begin by the end this decade. Shell plans to increase LNG volumes globally by 4%-5% per year until 2030.

Shell Nigeria owns 40% of the project while Sunlink Energys holds 60%.

Shell's Upstream President, Peter Costello, stated in a press release that the announcement today demonstrates Shell's continued commitment to Nigerian energy, with a particular focus on Deepwater and Integrated Gas.

TotalEnergies sold its 12.5% stake in the oil mining lease 118 that hosts the offshore Bonga Oilfield to Shell and Eni Agip last month for $510 million. (Reporting from Yadarisa Shabong and Shadia Nasralla in Bengaluru; editing by Rashmi aich)

(source: Reuters)