October 14, (THEWILL) — Nigeria has achieved another milestone in its energy sector as Shell Petroleum Development Company announced a $2 billion Final Investment Decision (FID) for the development of the HI offshore gas field located in Oil Mining Lease (OML) 144.
President Bola Ahmed Tinubu welcomed the announcement, describing it as further proof of Nigeria’s renewed attractiveness to global investors and a validation of his administration’s sweeping reforms in the oil and gas industry.
The Non-Associated Gas (NAG) project is expected to deliver about 350 million standard cubic feet of gas per day (mmscf/d) from 2028, accounting for nearly a third of the feed gas required by the Nigeria LNG Limited’s Train 7 project.
This new investment brings Nigeria’s total major upstream oil and gas commitments to over $8 billion since President Tinubu assumed office in 2023.
It is also the country’s third major FID in the past 18 months, following the Ubeta Gas Project and the Bonga North Deepwater Project.
A statement issued on Tuesday by Bayo Onanuga, Special Adviser to the President on Information and Strategy, noted that the combined output from the HI and Ubeta gas fields could supply up to 15 percent of the total feed gas required by NLNG Trains 1–7, further cementing Nigeria’s position as a key global gas supplier.
Since 2024, President Tinubu has implemented a series of targeted energy reforms coordinated by the Office of the Special Adviser to the President on Energy.
These reforms introduced new fiscal incentives, regulatory clarity, simplified operating processes, reduced contracting costs, and shortened approval timelines.
Now enshrined in legislation, these measures have restored investor confidence and repositioned Nigeria as a competitive investment destination.
The three major FIDs — HI Gas, Ubeta Gas, and Bonga North Deepwater — represent strategic projects unlocked under the presidential directives to fast-track the growth of Nigeria’s gas value chain.
Notably, the HI gas field, discovered in 1985, is being developed under Presidential Directive 40, which provides a competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the new investment would have far-reaching impacts.
She said, “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.
“These projects will strengthen Nigeria’s LNG export reliability, expand domestic LPG supply, reduce imports, boost foreign exchange earnings, and advance clean cooking access for millions of households. This is just the beginning; more FIDs are on the way.”
Shell’s Upstream President, Peter Costello, also reaffirmed the company’s long-term commitment to Nigeria’s energy development.
Costello stated, “Following recent investment decisions related to the Bonga Deepwater project, today’s announcement reinforces our commitment to Nigeria’s energy sector, focusing on Deepwater and Integrated Gas.
“This project will help Shell grow our leading Integrated Gas portfolio while supporting Nigeria’s ambition to become a stronger player in the global LNG market.”
The NLNG Train 7 project will expand Nigeria’s LNG production capacity by eight million metric tonnes annually — about 35 percent above current output.
Beyond boosting exports, the project is expected to enhance domestic gas supply, create jobs, stimulate SMEs, and catalyse economic growth in host communities.
President Tinubu reaffirmed his administration’s commitment to sustaining a business-friendly environment for both local and international investors.
“This major FID by Shell, their second in one year, is a clear validation of our reform efforts and a signal to the world that Nigeria is fully open for business and investment,” the President stated.
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