Shell has announced a $2 billion Final Investment Decision (FID) for the shallow offshore HI Field in Oil Mining Lease (OML) 144, marking another major milestone in Nigeria’s petroleum sector. The Federal Government described this as a significant boost under President Bola Ahmed Tinubu’s Renewed Global Investment Confidence plan.
The announcement was made in a statement released by Bayo Onanuga, the Special Adviser to the President on Information and Strategy, through his X account (formerly Twitter). According to the State House release, “The new Non-Associated Gas (NAG) development project will deliver approximately 350 million standard cubic feet of gas per day (mmscf/d) from 2028, equivalent to almost a third of the requirements of Nigeria LNG Limited’s Train 7 project.”
The Federal Government explained that the announcement brings total upstream investment commitments in Nigeria’s oil and gas sector to over $8 billion since President Tinubu took office in 2023. This achievement, the statement added, highlights the administration’s success in implementing reforms that have renewed investor confidence in the nation’s energy industry.
The HI Field project marks Nigeria’s third major oil and gas FID in the last 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project. The Federal Government noted that these milestones demonstrate the country’s growing potential in harnessing its natural gas resources for both domestic and export purposes. It also stated that the Ubeta and HI gas projects together can supply up to 15 percent of the total feedgas requirements for Nigeria LNG’s Trains 1 to 7.
Since 2024, President Tinubu has issued targeted directives to drive reforms within the energy sector. These directives, coordinated by the Office of the Special Adviser to the President on Energy, have introduced fiscal incentives, regulatory clarity, simplified operating processes, and reduced contracting costs. The reforms have also shortened approval timelines to encourage faster project delivery and attract sustainable foreign investment.
President Tinubu’s Special Adviser on Energy, Olu Arowolo, said the investment marks a major turning point for Nigeria’s gas development agenda. Arowolo stated, “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 significantly strengthen the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use, reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households. And this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow.”
He added that the administration’s strategic direction in the oil and gas sector is focused on creating jobs, increasing gas availability for industrial use, and improving Nigeria’s competitiveness in the global energy market.
Shell’s Upstream President, Peter Costello, also confirmed the company’s long-term commitment to Nigeria’s energy growth. Costello said, “Following recent investment decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas. 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.”
He further explained that the Nigeria LNG Train 7 project will increase the nation’s LNG production capacity by 8 million metric tonnes annually, representing about 35 percent of current output. According to Costello, this expansion will reinforce Nigeria’s role in the global gas supply chain, boost domestic gas supply, promote job creation, stimulate small and medium enterprises, and drive economic growth in host communities.
President Bola Ahmed Tinubu reiterated his administration’s commitment to creating an enabling environment for investors in Nigeria’s petroleum industry. “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,” President Tinubu stated.