ABUJA — President Bola Ahmed Tinubu has welcomed the announcement by Shell of a $2 billion Final Investment Decision (FID) for a new gas development project in Nigeria’s HI Field, located in Oil Mining Lease (OML) 144, shallow offshore.
The new Non-Associated Gas (NAG) project is expected to start production in 2028, delivering about 350 million standard cubic feet of gas per day (mmscf/d) — almost one-third of the gas needed for the Nigeria LNG Limited’s (NLNG) Train 7 project, one of the country’s major gas expansion programmes.
With this decision, total major oil and gas investment commitments through Final Investment Decisions (FIDs) in Nigeria have now exceeded $8 billion since President Tinubu took office in 2023. The Presidency says this reflects the success of Tinubu’s economic reforms and the renewed confidence of global investors in Nigeria’s energy sector.
This latest 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. Together, the HI and Ubeta projects can supply up to 15 per cent of NLNG’s total gas feed, supporting Trains 1 through 7 and contributing significantly to both domestic and export gas supply.
Since 2024, President Tinubu has introduced several targeted reforms in the oil and gas industry through directives coordinated by the Office of the Special Adviser to the President on Energy. These reforms include new fiscal incentives, clearer regulations, simplified operating processes, reduced contracting costs, and shorter approval timelines.
Now embedded in law, these changes have helped restore investor confidence and reposition Nigeria as a competitive destination for energy investment.
The three landmark FIDs — HI Field, Ubeta, and Bonga North — were selected by the Federal Government to drive Tinubu’s energy sector transformation agenda. The HI gas field itself was discovered 40 years ago, in 1985, and its development is being enabled by Presidential Directive 40, which created a more attractive fiscal framework for gas projects in onshore and shallow offshore areas.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the government’s strategy is paying off by ensuring the supply of gas needed to sustain Nigeria’s growing LNG exports and domestic demand.
“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,” Verheijen said.
“These projects will strengthen Nigeria’s LNG exports, boost domestic LPG supply, reduce imports, increase foreign exchange earnings, and promote clean cooking access for millions of Nigerian households. This is only the beginning — more FIDs are on the horizon.”
Peter Costello, Shell’s Upstream President, said the investment underscores Shell’s long-term commitment to Nigeria’s energy sector.
“Following recent investment decisions related to the Bonga Deepwater development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector,” Costello said.
“This project will help Shell grow our Integrated Gas portfolio, while supporting Nigeria’s plans to become a major player in the global LNG market.”
The NLNG Train 7 project will expand Nigeria’s liquefied natural gas production capacity by 8 million metric tonnes per year — a 35 per cent increase over current levels. The expansion will create jobs, support small and medium enterprises (SMEs) in host communities, boost government revenue, and promote economic growth.
President Tinubu praised the announcement as another proof that Nigeria’s ongoing reforms are attracting global investors back to the country.
“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.
According to the Presidency, the project is a crucial step in Nigeria’s broader plan to unlock its vast gas resources, expand local industries, and position the country as a global energy hub.
Bayo Onanuga
Special Adviser to the President (Information & Strategy)
October 14, 2025
