₦airaland Forum

Shell has awarded a major engineering, procurement, and construction (EPC) contract to China’s Offshore Oil Engineering Company (COOEC), in a significant move to bolster Nigeria’s gas production.

The agreement, finalised recently, entrusts COOEC with delivering a platform jacket and topsides for the shallow-water HI gas and condensate project in Nigeria’s Offshore Mining Licence (OML) 144.

The HI project, located 50 kilometers offshore in the Gulf of Guinea, is poised to significantly enhance Nigeria’s gas output and condensate production.

Once operational, the project is expected to deliver up to 500 million cubic feet of gas per day to the Nigeria LNG (NLNG) Train 7 facility and export approximately 70,000 barrels of condensate daily at peak production.

Strategic partnership for development

Shell’s decision to partner with the Tianjin-based COOEC follows months of meticulous planning and collaboration.

Multiple sources close to the project told upstreamonline.com that Shell finalised the deal after a series of yard inspections and technical evaluations, ensuring the contractor met the stringent standards required for the offshore development.

COOEC will oversee the construction of a wellhead and processing platform, which will be bridge-linked to an accommodation platform. These structures are vital to the project’s operations, providing the necessary infrastructure for efficient drilling, processing, and export activities.

Innovative Project Scope

The HI project represents a step forward in Shell’s strategy to expand Nigeria’s role in the global energy market. The shallow-water gas field, situated within OML 144, will involve the drilling of six non-associated gas (NAG) wells.

Once operational, gas and some condensate from these wells will be transported via a newly constructed 20-inch pipeline. This pipeline will connect to the Shell-operated Offshore Gas Gathering System (OGGS), a critical infrastructure for integrating Nigeria’s offshore gas production.

The HI project aligns with Nigeria’s broader push to develop its gas resources under the “Decade of Gas” initiative, which aims to increase domestic utilization, export capacity, and environmental sustainability by reducing reliance on more polluting fuels.

Boosting the NLNG Train 7 Facility

A key objective of the HI project is to supply gas to the Nigeria LNG Train 7 facility, which is under construction. Train 7 is expected to increase NLNG’s production capacity by 35 percent, providing a crucial boost to Nigeria’s liquefied natural gas exports. By ensuring a steady supply of feedstock gas, the HI project will support Nigeria’s ambition to remain a competitive player in the global LNG market.

In addition to bolstering exports, the project will create economic opportunities, including job creation during construction and operations. The integration of advanced technology and expertise will also provide local workers with skills and knowledge that can benefit the wider energy sector.

Environmental and Economic Impacts

The development of the HI gas field represents a significant investment in Nigeria’s energy future. By focusing on natural gas, the project aligns with global efforts to transition to cleaner energy sources. Natural gas is considered a key transition fuel, offering a lower-carbon alternative to coal and oil while providing a reliable energy supply.

Moreover, the export of condensate, a valuable byproduct of natural gas production, will enhance Nigeria’s revenue streams. At peak production, the export of 70,000 barrels of condensate daily will provide an additional boost to the nation’s economy.

AmazingGenius:
Source: https://businessday.ng/energy/article/shell-taps-chinese-contractor-for-nigerias-oml-144-gas-project/

AntiChristian:


More gas more returns!

May it profit the masses ooo!

yang:
What is the job of Nigeria content management board exactly?

Sitting in Abuja and.collecting salary?

How many Gas projects have Nigerian companies executed in China?

When we say this country is a zoo and should be divided

How can billion dollar projects be given to China and local contractors are looking on while young people have no job and are looking to japa to go abroad and sell drugs, clean toilets or do prostitution?

What kind of a zoo country is this?

Engineers graduate and no job yet Shell is exporting Nigerian jobs executed 50km off the coast of Bayelsa,

What a zoo

stepaside1:
Good news all over. We are witnessing unprecedented investment in the oil and gas sector. 2 significant Final Investment Decisions (FID) announced in 2024, this HI project has its FID imminent within the first half of 2025, several other significant FIDs lined up. We are looking at close to $20-30bln investments coming in.

Almost all pending onshore assests and share sales to indigenous companies deals have received ministerial consent, laying the foundation for tremendous growth in oil and gas production, controlled mostly by indigenous companies. Future is really bright.

I encourage hasty completion of Ajaokuta Steel revamp and other such steel revamps around the country to take advantage of the steel requirement for these huge projects. Fabrication yards, construction and assembly yards are required to domesticate much of these project spend.

Vickieflo:
A system where even a foreigner steals from the system.

COMPAQ:
Oga calm down! Where are you seeing $20b to $30bl from?
Bonga North FID na $5bln
The Total FID na $600mln
This HI FID, I doubt it will be more than $1bln to $1.5bln

FitCorper:
;Da

China don win Nigeria heart and they will ensure our development is complete because na only Nigeria get resources needed for china to topple USA and become No 1 world power. I said it to my dad few days ago “the money deal China and Nigeria signed na underground power move and I’m sure USA will be severely pained at missing out on Nigeria. Buhari started it and Tinubu de checkmate am.
God bless Nigeria and no where else.

yang:
What is the job of Nigeria content management board exactly?

Sitting in Abuja and.collecting salary?

How many Gas projects have Nigerian companies executed in China?

When we say this country is a zoo and should be divided

How can billion dollar projects be given to China and local contractors are looking on while young people have no job and are looking to japa to go abroad and sell drugs, clean toilets or do prostitution?

What kind of a zoo country is this?

Engineers graduate and no job yet Shell is exporting Nigerian jobs executed 50km off the coast of Bayelsa,

What a zoo

Krankhead:
Why are you not N engineer instead you choose to be selling Gala

stepaside1:
This HI project is about $2.5bln. Exxon's Owo offshore project will be about $10bln when it takes FID. Shell Offshore in Nigeria has the Bonga South West oil project of about $10bln and a giant gas field development of about $5bln both at advanced stages of feasibility and concept definition. There are others from ENI, Chevron, Shell Onshore etc. Add this to the $5.6bln from the 2 projects that have taken FID already. Do you still think I should be calming down?