In a bold move to enhance Nigeria’s gas production and secure a foothold in the global energy market, Shell has awarded a multi-billion-dollar contract to China’s Offshore Oil Engineering Company (COOEC) for the development of the HI gas project in Nigeria’s Offshore Mining Licence (OML) 144.
This groundbreaking collaboration comes at a pivotal moment in Nigeria’s energy landscape, as the country looks to strengthen its position in global gas markets, particularly under the federal government’s ambitious “Decade of Gas” initiative. Shell’s partnership with COOEC will see the construction of critical offshore infrastructure designed to boost gas supply and condensate production, marking a major leap toward achieving national energy goals.
The HI gas project, located 50 kilometers offshore in the Gulf of Guinea, promises to be a game-changer for Nigeria’s energy sector. The shallow-water gas field, once fully operational, is expected to deliver up to 500 million cubic feet of gas per day and produce 70,000 barrels of condensate per day at its peak output. This significant contribution will feed into the Nigeria LNG (NLNG) Train 7 facility, slated to increase the country’s LNG production by a staggering 35 percent.
A Milestone Partnership for the Future
Shell’s decision to award the engineering, procurement, and construction (EPC) contract to COOEC followed months of rigorous evaluations, including yard inspections and technical assessments. A well-placed source revealed that Shell’s leadership was impressed by COOEC’s technical expertise and the company’s ability to meet the stringent standards required for such a high-profile offshore project.
In a statement, Shell’s Project Manager, Dr. Olamide Adeoye, explained the significance of the partnership: “This project is a cornerstone in Shell’s long-term vision for Nigeria’s energy future. The technical capabilities of COOEC will enable us to unlock the full potential of the HI gas field, supporting both domestic energy needs and increasing Nigeria’s presence in the global LNG market.”
COOEC, a subsidiary of the China National Offshore Oil Corporation (CNOOC), has a strong track record in large-scale offshore projects. The Tianjin-based company will oversee the construction of a wellhead and processing platform, which will be linked to an accommodation platform. These structures will form the heart of the operations, enabling efficient gas processing and condensate export.
A Transformative Project for Nigeria’s Energy Sector
At the core of the HI project is its role in furthering Nigeria’s energy diversification efforts. The country, long dependent on oil revenues, has been seeking ways to maximize its vast natural gas reserves as part of a broader strategy to meet domestic energy needs and bolster exports. The HI gas project is a key part of this strategy.
The gas produced from the HI project will be transported through a newly constructed 20-inch pipeline, which will connect to the Shell-operated Offshore Gas Gathering System (OGGS). This integration is critical for ensuring the smooth flow of gas to the NLNG Train 7 facility, which is under construction and poised to enhance Nigeria’s LNG export capacity. The project’s contribution to NLNG Train 7 will directly support Nigeria’s bid to compete more effectively in the global LNG market, where demand continues to rise.
Dr. Adeoye emphasized, “The successful completion of the HI project will not only meet Nigeria’s gas needs but will also place the country in a stronger position to capitalize on the growing global demand for LNG.”
Employment, Technology Transfer, and Economic Growth
The project’s economic impact will be felt across various sectors, from the creation of local jobs to the transfer of cutting-edge technology. The construction phase alone is expected to generate thousands of jobs, with local contractors and workers benefiting from the expertise shared by the project’s international partners.
“This project is a win-win for Nigeria,” said COOEC Project Director, Li Wei. “Not only are we committed to delivering world-class infrastructure, but we are also focused on ensuring that Nigeria benefits from technology transfer and the development of local skills that will have lasting effects beyond the life of the project.”
The long-term benefits of the HI gas project will extend well beyond the energy sector. As condensate exports ramp up, Nigeria stands to see a significant increase in its revenue streams. Condensate, a valuable byproduct of gas production, will provide additional financial gains that will help fund key government initiatives, especially those related to infrastructure development and poverty alleviation.
Environmental Impact and Sustainability
The HI gas project also aligns with global efforts to transition to cleaner energy sources. Natural gas, which burns more cleanly than coal or oil, is increasingly being recognized as a key transitional fuel in the global energy mix. Nigeria’s focus on expanding its gas infrastructure underpins the country’s commitment to reducing its carbon footprint and contributing to global sustainability goals.
In addition, the project is designed with environmental considerations in mind. Measures will be taken to ensure that the gas and condensate production process adheres to international environmental standards, minimizing any adverse impact on the Gulf of Guinea’s fragile ecosystem.
“Nigeria is committed to sustainable energy development,” said Dr. Adeoye. “The HI project will contribute to our nation’s energy security while respecting environmental stewardship and contributing to the global fight against climate change.”
