Writing By Bello Wakili; Editing By Godwin Duru
Nigeria has secured another major boost to its oil and gas sector, with Shell announcing a $2 billion Final Investment Decision (FID) on the new HI Field offshore gas project in Oil Mining Lease (OML) 144.
The new Non-Associated Gas (NAG) project is expected to deliver about 350 million standard cubic feet of gas per day (mmscf/d) from 2028 — equivalent to nearly one-third of the gas supply needed for the Nigeria LNG Limited Train 7 project.
According to a statement from the State House, the Shell investment raises total major upstream oil and gas commitments in Nigeria to over $8 billion since President Bola Ahmed Tinubu assumed office in 2023.
It also represents the third major oil and gas FID in 18 months, following the Ubeta NAG project and the Bonga North deepwater project.
The Federal Government said the new investment underscores the success of President Tinubu’s reform agenda, which has restored investor confidence in the nation’s energy sector.
Since 2024, the President has introduced targeted reforms coordinated by the Office of the Special Adviser on Energy, providing fiscal incentives, regulatory clarity, and streamlined approval processes.
These reforms have been codified into law to sustain investor confidence and make Nigeria more competitive globally.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the development as a major step toward energy security and economic growth.
“With the Ubeta FID and now the HI FID, we have secured the gas supply needed to make NLNG Train 7 not just possible, but transformative,” Verheijen said. “These projects will strengthen Nigeria’s LNG exports, boost domestic LPG supply, and support millions of households with clean cooking energy.”
Shell’s Upstream President, Peter Costello, said the company remains committed to supporting Nigeria’s energy ambitions.
“This announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas. It supports Nigeria’s plans to become a major player in the global LNG market,” Costello stated.
The HI Field, first discovered in 1985, is being developed under Presidential Directive 40, which introduced new fiscal terms for Non-Associated Gas projects in onshore and shallow offshore fields.
President Tinubu welcomed the investment as a clear validation of his administration’s efforts to attract global capital into Nigeria’s energy sector.
“This major FID announcement by Shell, their second in one year, is a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment,” the President said.
The NLNG Train 7 project is set to expand Nigeria’s LNG production capacity by 8 million metric tonnes per annum, representing a 35 percent increase in current output, while also creating jobs, expanding domestic gas supply, and stimulating local economies.
Bello Wakili
