Global energy giant Shell has announced a $2 billion investment in Nigeria’s offshore HI gas field under Oil Mining Lease (OML) 144, marking the country’s second major gas project approval in 18 months and further boosting investor confidence in President Bola Ahmed Tinubu’s energy reforms.
The Final Investment Decision (FID) on the new Non-Associated Gas (NAG) project will deliver about 350 million standard cubic feet of gas per day (mmscf/d) starting in 2028, representing almost one-third of the gas required for the Nigeria LNG (NLNG) Train 7 project.
With this development, total upstream oil and gas investment commitments secured since President Tinubu assumed office now exceed $8 billion, including the Ubeta and Bonga North projects.
The HI field, discovered in 1985, will now be developed under Presidential Directive 40, which offers new fiscal incentives and regulatory clarity for gas production in onshore and shallow offshore fields.
Read Also: NNPCL Pins Cooking Gas Shortage on PENGASSAN Strike, Sparks Public Outcry
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the reforms have unlocked projects critical to ensuring gas supply for both domestic use and export.
“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,” she stated, adding that the projects will reduce LPG imports and expand access to clean cooking for Nigerian households.
Shell’s Upstream President, Peter Costello, reaffirmed the company’s long-term commitment to Nigeria’s energy future.
“This investment underscores Shell’s continued focus on deepwater and integrated gas, while supporting Nigeria’s ambition to become a stronger player in the global LNG market,” he said.
President Tinubu described Shell’s latest FID as “a clear validation” of his administration’s reform agenda and a sign of renewed global investor confidence.
“Nigeria is fully open for business and investment,” he declared.
The NLNG Train 7 project is expected to increase Nigeria’s LNG production capacity by 8 million metric tonnes annually, boost exports, create thousands of jobs, and stimulate growth among small and medium enterprises in host communities.
