Nigeria has received a significant boost for its gas sector as Shell, a leading global energy company, announced a $2 billion investment in the development of the HI Field, a shallow offshore non-associated gas project situated in OML 144.
Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, revealed this information in a statement released on Tuesday in Abuja.
The Presidency noted that the project is anticipated to produce approximately 350 million standard cubic feet of gas per day (mmscf/d) starting in 2028.
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This marks Nigeria’s second major gas investment in the past 18 months and highlights the renewed global confidence in the country’s oil and gas sector under President Tinubu’s leadership.
According to the statement, the new project increases total upstream investment commitments through final investment decisions to over $8 billion since Tinubu took office in 2023.
President Tinubu welcomed the announcement, describing the investment as further validation of his administration’s reforms in the energy sector and the growing appeal of Nigeria to international investors.
He stated that “this significant final investment decision announcement by Shell, their second in a year, clearly validates our extensive reform initiatives and signals to the world that Nigeria is fully open for business and investment.”
The HI gas project, discovered in 1985, is expected to provide nearly one-third of the feed gas needed for Nigeria’s Liquefied Natural Gas (LNG) Train 7, which aims to increase the nation’s LNG production capacity by 8 million metric tonnes per annum, representing a 35 percent rise in current output.
The Presidency indicated that the HI project follows the Ubeta Non-Associated Gas project and the Bonga North Deepwater development, making it the third major oil and gas FID in 18 months.
Together, the HI and Ubeta projects are projected to supply up to 15 percent of the total feedgas requirements for NLNG across Trains 1 to 7.
Special Adviser to the president on Energy, Olu Verheijen stated that the project was made possible by the administration’s targeted reforms, including Presidential Directive 40, which established a competitive fiscal framework for onshore and shallow offshore gas projects.
“With the Ubeta FID and now the HI FID, we have secured the gas supply necessary to make NLNG Train 7 not only feasible but transformative.
“These projects will enhance Nigeria’s LNG exports, increase LPG supply for domestic consumption, reduce imports, and improve access to clean cooking for millions of households,” she said.
Peter Costello, Shell’s Upstream President, remarked that the investment reflects the company’s long-term commitment to Nigeria’s energy sector.
“Following recent investment decisions related to the Bonga deep-water development, today’s announcement underscores our ongoing commitment to Nigeria’s energy sector, focusing on Deepwater and Integrated Gas,” he stated.
The Presidency emphasized that the Tinubu administration is keen to any meaningful development that will have a direct impact on Nigeria’s oil sector.
