In a bold move that reinforces Nigeria’s standing in the global gas industry, Shell Nigeria Exploration and Production Company (SNEPCo) has signed a major contract with U.S. oilfield services giant, Halliburton, to deliver integrated drilling services for its flagship shallow-water HI Gas Development Project offshore Nigeria.
The deal, announced in Houston and confirmed by Shell officials in Lagos, represents another major milestone in Nigeria’s quest to harness its vast natural gas potential, create jobs, and power industries under the Federal Government’s gas-driven economic agenda.
Though the value of the contract remains undisclosed, industry insiders describe it as a multi-million-dollar engagement that will deploy remote operations and automated drilling technologies—a hallmark of Halliburton’s innovation. The company said the deployment will drive precision, improve safety, and reduce emissions during drilling and production phases.
The HI Project, located in Oil Mining Lease (OML) 144, was sanctioned by Shell in mid-October 2025 after years of planning and strategic assessment. The project is being developed in partnership with Sunlink Energies & Resources Limited, a fast-rising indigenous energy firm holding a 60% stake, while Shell retains a 40% working interest.
The development underscores Shell’s renewed confidence in Nigeria’s offshore environment and signals deeper collaboration between international oil companies (IOCs) and indigenous firms, in line with the Petroleum Industry Act (PIA) which promotes local participation in the energy value chain.
When completed, the HI field will supply approximately 350 million standard cubic feet of gas per day (MMscf/d) to the Nigeria LNG (NLNG) plant on Bonny Island—where Shell holds a 25.6% shareholding. The gas will power the much-anticipated Train 7 expansion project, being constructed by a Saipem-led consortium, which is expected to expand Nigeria’s LNG production capacity and export revenues.
Halliburton’s Chairman and Chief Executive Officer, Jeff Miller, described the partnership as a strategic alignment of vision and technology aimed at maximizing Nigeria’s gas potential. He stated that Halliburton’s automated drilling systems and remote operational tools would “enhance operational efficiency, lower carbon footprint, and set new performance benchmarks in offshore gas development.”
Energy analysts say the Shell-Halliburton deal could prove pivotal for Nigeria’s gas future, coming at a time when the country is positioning itself as Africa’s leading supplier of cleaner fuels. The HI project’s anticipated output is expected to strengthen domestic supply, power industrial growth, and support the export market through NLNG.
“This deal sends a strong signal that international partners still see value in Nigeria’s upstream space,” said an energy analyst in Lagos. “It is also a win for local content development, with Sunlink Energies bringing homegrown expertise into an internationally operated field.”
Shell has long maintained that its focus in Nigeria is now heavily tilted towards gas production, aligning with global decarbonization goals and the nation’s energy transition plan. The company emphasized that the HI Project will support Nigeria’s objective of harnessing natural gas not only for export but also for domestic energy use, fueling power generation, industries, and transportation.
Production from the HI gas field is targeted to begin before the end of this decade, with initial volumes expected to feed the domestic market while complementing export demand.
The Shell-Halliburton collaboration thus stands as more than a contract, it is a partnership for progress, technology transfer, and economic renewal. It represents a tangible vote of confidence in Nigeria’s regulatory reforms and offshore development prospects.
As Nigeria pursues its ambition to become a global gas hub, this project shines a light on what is possible when international expertise meets local participation, fueling growth, powering industries, and lighting up the path to energy security.
Shell partners with Halliburton to develop Nigeria’s HI Gas Project in OML 144. The deal will boost gas output to 350MMscf/d for NLNG Train 7, advancing Nigeria’s energy transition and export capacity.
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