Halliburton announced that Shell Nigeria Exploration and Production Company (SNEPCo) awarded it a contract to provide integrated drilling services for the HI gas project in shallow waters of OML 144 off the Niger Delta coast.
The Houston-based company said it will use remote operations and automated drilling technologies to enhance safety, reduce costs, and shorten project timelines. This approach has become common among international drillers as operators seek higher efficiency for complex offshore wells.
Shell approved the HI development in mid-October, holding a 40 percent stake in the project, while local partner Sunlink Energies & Resources owns the remaining 60 percent. The project aims to deliver up to 350 million cubic feet of natural gas per day to Nigeria LNG’s plant on Bonny Island once operational. The gas will supply the long-delayed Train 7 expansion, built by a consortium led by Italy’s Saipem.
Production is expected to start before the decade ends, according to sources familiar with the plans.
The contract signals renewed confidence in Nigeria’s energy sector as the government works to reverse declining offshore investment and increase gas output. Although Nigeria has Africa’s largest natural gas reserves, development has lagged due to infrastructure gaps, regulatory uncertainties, and years of underinvestment.
For Shell, the HI project supports its broader focus on gas and LNG, which it considers central to its long-term portfolio. Shell already holds a 25.6 percent stake in the Bonny Island LNG complex, alongside the Nigerian National Petroleum Company, TotalEnergies, and Eni.
The additional supply from HI will strengthen feedstock availability for Train 7, a key Nigeria LNG expansion that aims to boost total liquefaction capacity by over 30 percent. The expansion has faced multiple delays due to pandemic disruptions, financing challenges, and contractor issues.
Nigeria’s government is pushing to bring more gas to market through its “Decade of Gas” initiative, which seeks to reduce gas flaring, expand domestic power generation, and increase exports. Earlier this year, President Bola Tinubu introduced policy incentives to attract investment from international oil companies, including potential special tax relief for gas projects.
Halliburton’s contract also highlights the growing use of remote and automated operations, especially in areas where logistics and offshore support are challenging. Executives at the company have long promoted automation as a way to reduce personnel exposure in high-risk offshore environments.
If completed successfully, the HI project will provide a significant boost to Nigeria’s LNG exports at a time when global buyers, particularly in Europe, are seeking more diversified gas supplies amid geopolitical disruptions.
source: businessday.ng
African Energy Council