Reported by: Ime Richard Aondofa | Edited by: Henry Owen
Abuja, October 14, 2025 — President Bola Ahmed Tinubu has welcomed Shell’s $2 billion Final Investment Decision (FID) for a new gas development in the shallow offshore HI Field, located in OML 144, describing it as a major boost to Nigeria’s energy sector and a clear endorsement of his administration’s reform agenda.
The Non-Associated Gas (NAG) project is expected to produce around 350 million standard cubic feet of gas per day (mmscf/d) from 2028, which will supply nearly a third of the feedstock required for Nigeria LNG Limited’s Train 7 project. This investment marks Nigeria’s third significant oil and gas FID in the past 18 months, following the Ubeta NAG project and the Bonga North deepwater project, bringing total upstream commitments since 2023 to over $8 billion.
President Tinubu highlighted that the recent approvals underscore the success of his administration’s efforts to revitalize Nigeria’s gas sector, attract global investment, and unlock the country’s abundant resources for both domestic and export use. Since 2024, targeted directives coordinated by the Office of the Special Adviser to the President on Energy have introduced fiscal incentives, simplified regulatory processes, cut contracting costs, and reduced approval cycle times.
The HI gas field, discovered in 1985, is being developed under Presidential Directive 40, which established a competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields. According to Olu Arowolo Verheijen, Special Adviser to the President on Energy, the HI and Ubeta projects will ensure sufficient gas supply to make NLNG Train 7 transformative. The projects are expected to strengthen LNG export reliability, expand domestic LPG supply, reduce imports, boost foreign exchange earnings, and improve access to clean cooking for millions of Nigerian households.
Peter Costello, Shell’s Upstream President, expressed the company’s continued commitment to Nigeria’s energy sector, noting that the HI gas field development will enhance Shell’s Integrated Gas portfolio while supporting Nigeria’s global LNG ambitions.
The NLNG Train 7 project will add 8 million metric tonnes of LNG annually, increasing Nigeria’s production capacity by 35 percent. Beyond reinforcing Nigeria’s position in the global gas market, the project is expected to generate jobs, stimulate economic growth, and support small and medium-sized enterprises in host communities.
President Tinubu reaffirmed his administration’s dedication to creating a conducive environment for both domestic and foreign investors. “This major FID announcement by Shell, their second in one year, validates our wide-ranging reform efforts and signals to the world that Nigeria is fully open for business and investment,” he said.
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