Nigeria has secured another major boost to its oil and gas sector with Shell’s $2 billion Final Investment Decision (FID) on the new offshore HI Field gas project, marking the country’s second major gas investment in 18 months.
According to a statement released by the State House and signed by Bayo Onanuga, Special Adviser to President Bola Ahmed Tinubu on Information and Strategy, the new Non-Associated Gas (NAG) development project located in the shallow offshore OML 144 will deliver approximately 350 million standard cubic feet of gas per day (mmscf/d) by 2028. This represents nearly one-third of the feedgas requirements for Nigeria LNG Limited’s Train 7 project.
The announcement raises the total value of major upstream oil and gas investment commitments made since President Tinubu assumed office in 2023 to over $8 billion, underscoring what the presidency described as “renewed global investor confidence” in Nigeria’s energy reforms.
The HI project follows two previous major FIDs—the Ubeta Non-Associated Gas project and the Bonga North deepwater project—highlighting the administration’s ongoing efforts to unlock Nigeria’s vast gas reserves for domestic use and export.
Together, the Ubeta and HI projects are expected to supply up to 15 percent of NLNG’s total feedgas requirements, covering Trains 1 through 7.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, noted that the projects are part of strategic reforms introduced by the Tinubu administration to make Nigeria a more competitive investment destination.
“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 boost Nigeria’s LNG exports, expand domestic LPG supply, reduce imports, and advance clean cooking access for millions of Nigerian households.”
Shell’s Upstream President, Peter Costello, also reaffirmed the company’s commitment to Nigeria’s energy sector, saying the new development “demonstrates our continued commitment to Nigeria’s Deepwater and Integrated Gas ambitions” and aligns with the country’s goal of becoming a major global LNG supplier.
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President Tinubu welcomed the announcement as further evidence of his administration’s reform success, saying it “validates our wide-ranging reform efforts and signals to the world that Nigeria is fully open for business and investment.”
The HI gas field, first discovered in 1985, is being developed under the framework of “Presidential Directive 40,” which introduced competitive fiscal incentives for Non-Associated Gas projects in onshore and shallow offshore fields.
The statement added that the NLNG Train 7 project will expand Nigeria’s LNG production capacity by 8 million metric tonnes annually—about 35 percent of current capacity—while creating jobs, stimulating economic growth, and strengthening local industries.
With this latest development, Nigeria’s oil and gas sector appears to be regaining momentum, signaling a renewed era of investor confidence under President Tinubu’s leadership.