Nigeria has recorded yet another milestone in its quest to become Africa’s leading gas investment destination, as Shell has announced a $2 billion Final Investment Decision (FID) on the development of the HI offshore gas field in Oil Mining Lease (OML) 144. The landmark decision marks Nigeria’s second major gas investment and third overall oil and gas FID in just 18 months under the administration of President Bola Ahmed Tinubu, further solidifying global investor confidence in the country’s energy sector reforms.
According to the State House, the new Non-Associated Gas (NAG) development project will produce approximately 350 million standard cubic feet of gas per day (mmscf/d) by 2028, equivalent to nearly one-third of the gas requirement for the Nigeria LNG (NLNG) Train 7 project.
The announcement adds to a growing list of major investments totaling over $8 billion in upstream oil and gas projects since President Tinubu assumed office in 2023. It follows the Ubeta Non-Associated Gas Project and the Bonga North Deepwater Project, two other significant developments that have redefined investor interest in Nigeria’s energy sector.
Reforms Driving Renewed Investor Confidence
President Tinubu’s administration has made energy sector revitalization a cornerstone of its economic reform agenda. Since 2024, the Federal Government, through the Office of the Special Adviser to the President on Energy, has introduced a series of targeted policy reforms to attract new investment and accelerate project execution timelines.
These include fiscal incentives for gas investments, streamlined regulatory processes, and shortened approval cycles. These measures have reduced contracting costs and restored transparency to a sector that previously struggled with policy uncertainty and bureaucratic delays.
Today, these reforms are embedded in law, providing long-term predictability and competitiveness for investors.
“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, welcoming the development.
Reviving Dormant Assets and Unlocking Value
The HI gas field, first discovered in 1985, had remained undeveloped for almost four decades due to fiscal and technical constraints. Its revival is now made possible by Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas development in onshore and shallow offshore terrains.
This directive, part of Tinubu’s broader Blueprint for Energy Security, has enabled the government to unlock strategic projects that had long been on hold. The Ubeta and HI gas projects together are expected to supply up to 15 percent of the total gas feedstock required by the NLNG Trains 1 to 7, significantly enhancing Nigeria’s LNG production capacity and export reliability.
Stakeholders React: Confidence and Commitment
Olu Arowolo Verheijen, the Special Adviser to the President on Energy, described the project as a transformative milestone that strengthens Nigeria’s energy self-sufficiency and global competitiveness.
“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 while expanding domestic LPG supply, reducing imports, boosting forex earnings, and advancing clean cooking access for millions of households,” she said.
From the investor’s side, Peter Costello, Shell’s Upstream President, reaffirmed the company’s commitment to Nigeria’s long-term energy future:
“Following recent investment decisions related to the Bonga Deepwater 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.”
Economic and Social Impact
The Shell HI project is projected to generate thousands of direct and indirect jobs, spur local content participation, and boost economic activity in host communities. Additionally, the NLNG Train 7 expansion, which will benefit directly from the HI project’s output, will increase Nigeria’s LNG production capacity by 8 million metric tonnes per annum (MTPA) — a 35 percent jump from current levels.
Beyond exports, the project will also expand domestic gas availability for industries, households, and power generation — advancing Nigeria’s clean energy transition goals and reducing dependence on imported liquefied petroleum gas (LPG).
Reflection: A Reformed Sector Poised for Global Relevance
Nigeria’s energy industry is experiencing a renaissance. After years of stagnation, policy uncertainty, and capital flight, the sector now benefits from deliberate policy reforms that have restored the confidence of international oil companies and new investors alike.
The combined effect of the HI, Ubeta, and Bonga North projects has not only reaffirmed Nigeria’s place as a major player in the global LNG market but also demonstrated the impact of sustained policy clarity, fiscal competitiveness, and strong leadership.
President Tinubu’s vision of leveraging Nigeria’s gas reserves — the largest in Africa — to power industries, create jobs, and drive sustainable economic growth is taking shape. With more Final Investment Decisions (FIDs) on the horizon, the trajectory of Nigeria’s energy future is unmistakably upward.
As global demand for cleaner energy sources grows, Nigeria’s repositioned gas sector now stands at the intersection of opportunity and transformation — signaling that the country is once again open for business, investment, and innovation.
Nigeria secures a $2 billion gas investment from Shell for the HI offshore field project—its second major FID in 18 months. Under President Tinubu’s reforms, over $8 billion in upstream oil and gas investments signal renewed global confidence in Nigeria’s energy sector.
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