In a major boost to Nigeria’s energy sector, Shell has committed $2 billion to a new offshore gas project, marking the country’s third significant upstream investment decision in just 18 months and underscoring renewed global confidence in President Bola Ahmed Tinubu’s reforms.
The Final Investment Decision (FID) targets the shallow offshore HI Field in OML 144, a Non-Associated Gas (NAG) development expected to produce 350 million standard cubic feet of gas per day (mmscf/d) starting in 2028. This output equates to nearly a third of the gas needs for Nigeria LNG Limited’s (NLNG) Train 7 expansion, which will add 8 million metric tonnes of annual LNG production—a 35% increase over current levels.
President Tinubu hailed the announcement as validation of his administration’s efforts since taking office in 2023, with total upstream oil and gas FIDs now exceeding $8 billion. The HI project follows the Ubeta NAG and Bonga North deepwater initiatives, collectively poised to supply up to 15% of NLNG’s feedgas for Trains 1 through 7. Discovered in 1985, the HI field is being unlocked through Presidential Directive 40, which provides competitive fiscal incentives for onshore and shallow offshore gas.
“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,” said Olu Arowolo Verheijen, Special Adviser to the President on Energy. She emphasized benefits like enhanced LNG exports, reduced LPG imports, boosted foreign exchange, and wider access to clean cooking for millions of households.
“More FIDs are on the horizon, proving that with the right policies, investment and impact follow.”
Shell’s Upstream President, Peter Costello, echoed the sentiment: “This Upstream project will help Shell grow our leading Integrated Gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market.”
The company, which announced its Bonga deepwater FID earlier this year, reaffirms its long-term commitment to Nigeria’s Deepwater and Integrated Gas sectors.
Tinubu’s reforms, coordinated via the Office of the Special Adviser on Energy, include unprecedented fiscal perks, streamlined regulations, cost reductions, and faster approvals—now enshrined in law. These have repositioned Nigeria as an attractive destination, reversing years of investor hesitation.
Beyond exports, the projects promise domestic gains: expanded gas supply, job creation, economic growth, and SME development in host communities. “Nigeria is fully open for business,” Tinubu declared, reiterating his pledge to foster an investor-friendly environment.
This surge in investments highlights Nigeria’s push to harness its vast gas reserves for both local energy security and global market share, potentially transforming the nation’s economy amid ongoing challenges like infrastructure gaps and energy poverty.
