President Bola Ahmed Tinubu has welcomed Shell’s Final Investment Decision (FID) on a new $2 billion gas project in Nigeria, a move that brings total major oil and gas investments under his administration to over $8 billion.
The new project in the shallow offshore HI Field (OML 144) is expected to deliver 350 million standard cubic feet of gas per day from 2028, supplying nearly a third of the gas required for the Nigeria LNG Limited’s Train 7 project.
This decision is the third major FID in Nigeria’s energy sector in the last 18 months, following the Ubeta gas project and the Bonga North deepwater project.
The government attributes this surge in investor confidence to President Tinubu’s sweeping reform agenda, which has introduced unprecedented fiscal incentives and streamlined regulatory processes.
Special Adviser to the President on Energy, Olu Verheijen, stated that the HI and Ubeta projects have secured the gas supply needed to make NLNG Train 7 “not just possible, but transformative.”
“The projects will significantly strengthen the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use,” Verheijen said, adding that the developments will boost foreign exchange earnings and advance clean cooking access for millions.
Shell’s Upstream President, Peter Costello, confirmed the company’s “continued commitment to Nigeria’s energy sector,” noting that the project supports the country’s ambition to become a more significant player in the global LNG market.
The HI field, discovered in 1985, is being unlocked by Presidential Directive 40, which created a competitive fiscal framework for gas developments.
The Tinubu administration has reiterated its commitment to fostering an enabling environment for both domestic and foreign investors.