Nigeria has secured yet another major foreign investment in its oil and gas sector, as global energy giant Shell announces a $2 billion Final Investment Decision (FID) for a new offshore gas project in the HI Field, located in OML 144.
The project — Nigeria’s second major gas investment in just 18 months — is set to deliver 350 million standard cubic feet of gas per day (mmscf/d) starting in 2028, equivalent to nearly one-third of the gas required for the Nigeria LNG Limited’s Train 7 project.
With this latest development, total upstream investment commitments in Nigeria’s energy sector have now surpassed $8 billion since President Bola Ahmed Tinubu took office in 2023 — a strong indicator of renewed global investor confidence in Africa’s largest energy producer.
Reform Dividend
President Tinubu, welcoming Shell’s decision, hailed it as a validation of his administration’s sweeping reforms designed to reposition Nigeria as a competitive energy investment hub.
“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,” the President said.
Since 2024, targeted presidential directives — coordinated through the Office of the Special Adviser to the President on Energy — have introduced new fiscal incentives, regulatory clarity, simplified processes, reduced contracting costs, and shortened approval timelines. These reforms, now backed by legislation, have attracted a fresh wave of international capital.
Unlocking Dormant Assets
The new HI gas development, discovered in 1985, is being developed under Presidential Directive 40, which established a competitive fiscal framework for Non-Associated Gas (NAG) in onshore and shallow offshore fields.
Together with the Ubeta Gas Project and Bonga North Deepwater Project, the HI development forms part of a trio of “blueprint projects” strategically unlocked by the Federal Government to strengthen gas supply for both domestic use and exports.
The Ubeta and HI fields alone could supply up to 15% of NLNG’s total feedgas requirements, spanning Trains 1 through 7.
Industry Voices
Special Adviser to the President on Energy, Olu Arowolo Verheijen, emphasized the impact of the investments:
“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 the reliability of Nigeria’s LNG exports, expand domestic LPG availability, and advance clean cooking access for millions of households. And this is only the beginning — more FIDs are on the horizon.”
Shell’s Upstream President, Peter Costello, reaffirmed the company’s long-term commitment:
“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 project will help Shell grow its leading Integrated Gas portfolio while supporting Nigeria’s ambitions in the global LNG market.”
Strengthening Nigeria’s LNG Capacity
The NLNG Train 7 project—one of Africa’s largest industrial undertakings—will expand Nigeria’s LNG capacity by 8 million metric tonnes per year, a 35% boost to current output. The expansion is expected to create jobs, drive economic growth, and stimulate local enterprises in host communities.
As Nigeria advances its gas monetization strategy, President Tinubu reaffirmed his administration’s determination to sustain the momentum:
“We remain fully committed to ensuring an enabling environment for both domestic and foreign investors. Nigeria’s energy future is bright, and this is only the beginning.”
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