Shell PLC, a leading entity in the energy sector, is demonstrating a strong commitment to Nigeria’s oil and gas market by considering an investment footprint that could reach $20 billion, according to statements from Bashir Ojulari, CEO of the NNPC Group. This prospective funding underscores Shell’s strategic interest within the region, highlighting significant projects currently in discussion and development.
Central to these investment plans is the Bonga South-West project, which remains a focal point in ongoing negotiations and development efforts. The scope of capital expenditure anticipated for this project alone approaches the $10 billion mark. This considerable outlay is complemented by expected operational costs that will accrue throughout the lifecycle of the development, representing a major financial and operational engagement for Shell and its collaborators.
In addition to the prospective Bonga South-West initiative, Shell has recently finalized a substantial investment decision for the Bonga North project, authorizing approximately $5 billion in capital spending. This decision was soon followed by further approval for an additional $2 billion investment aimed at advancing the HI/Feed shallow-water gas development project, signaling a multi-faceted commitment across several adjacent ventures.
Reflecting on recent activity, Shell, together with its project partners, has committed close to $7 billion in investments across Nigeria within the last thirteen months. These commitments are chiefly concentrated in the Bonga North and HI gas development projects, underscoring the company’s ongoing focus on enhancing resource extraction and processing capabilities within the country’s offshore fields.
The HI gas project, in particular, reached an important milestone in October 2025 when Shell Nigeria Exploration and Production Company Limited, alongside Sunlink Energies and Resources Limited, approved the final investment decision. This project, situated offshore, aims to bolster gas production capacity significantly.
At its peak operation, the HI gas facility is projected to yield up to 350 million standard cubic feet of gas per day. This output translates to approximately 60,000 barrels of oil equivalent daily, providing a substantial contribution to Shell’s integrated gas portfolio and the broader Nigerian energy landscape.
Further aligning with production objectives, Shell recently updated its fourth-quarter operational guidance. The forecast for Integrated Gas production was narrowly adjusted to a range of 930,000 to 970,000 barrels of oil equivalent per day, refining the prior outlook that spanned from 920,000 to 980,000 boe per day. This revision reflects a more precise estimate within a stable production volume bracket.
Conversely, the company's projections for LNG liquefaction volumes experienced a slight downward adjustment. Shell now expects the volumes to fall between 7.5 million and 7.9 million metric tons, a minor decrease from its earlier guidance of 7.4 million to 8.0 million metric tons. This update indicates a modest recalibration of output expectations within the LNG segment.
From a market perspective, shares of Shell PLC responded positively to the announced developments. On the day of the disclosure, Shell’s stock price rose by approximately 1.34 percent, reaching $73.39 per share, signaling investor approval and confidence in the company’s strategic Nigerian ventures and overall growth trajectory.
As Shell positions itself to deploy significant financial resources in Nigeria's offshore oil and gas sector, these investments underline an intent to expand core operations in a region with substantial hydrocarbon reserves. The company’s emphasis on projects such as Bonga South-West, Bonga North, and the HI gas development highlights a comprehensive approach to resource development, aimed at sustaining upstream production and integrated gas flows amid evolving market conditions.
Looking ahead, the realization of these investment plans will depend on various factors, including project approvals, operational execution, and broader market dynamics that could influence capital allocation and production performance. Nevertheless, Shell’s articulated consideration of a $20 billion investment horizon in Nigeria marks a pivotal affirmation of its strategic priorities within the country and the West African energy sector at large.