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.
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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.
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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.
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