Nigeria has secured another major boost for its oil and gas sector as Shell Petroleum Development Company announced a $2 billion Final Investment Decision (FID) for the development of a new offshore gas project in the HI Field, OML 144.
According to a statement issued on Monday by Presidential Adviser on Information and Strategy, Bayo Onanuga, President Bola Ahmed Tinubu welcomed the investment as a clear vote of confidence in his administration’s ongoing reforms in the energy sector.
The HI Field Non-Associated Gas (NAG) project is expected to deliver 350 million standard cubic feet of gas per day (mmscf/d) from 2028 — nearly one-third of the feedstock required for the Nigeria LNG Train 7 project.
With this latest announcement, total upstream investment commitments under President Tinubu’s administration have surpassed $8 billion, highlighting renewed trust from global investors in Nigeria’s oil and gas industry.
The HI Field development marks the third major FID in 18 months, following the Ubeta Non-Associated Gas project and Bonga North Deepwater project.
Combined, the Ubeta and HI projects could supply up to 15 percent of Nigeria LNG’s total feedgas requirements, covering Trains 1 to 7.
President Tinubu’s targeted policy directives, coordinated through the Office of the Special Adviser on Energy, have introduced fiscal incentives, regulatory clarity, and reduced contracting costs — reforms that have been codified into law to improve Nigeria’s competitiveness.
The HI gas project, first discovered in 1985, was unlocked under Presidential Directive 40, which established a new fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.
Special Adviser on Energy, Olu Arowolo Verheijen, said the development represents a major leap for Nigeria’s gas ambitions.
“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, expand domestic LPG supply, boost foreign exchange earnings, and advance clean cooking access for millions of households.”
Shell’s Upstream President, Peter Costello, described the project as part of Shell’s continued commitment to Nigeria’s energy future.
“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,” Costello stated.
The NLNG Train 7 project, once completed, will increase Nigeria’s LNG production capacity by 8 million metric tonnes annually, representing a 35 percent expansion.
President Tinubu reaffirmed his administration’s dedication to fostering a business-friendly environment that encourages both domestic and foreign investment.
“This major FID announcement by Shell, their second in one year, is a clear validation of our reform efforts and a signal to the world that Nigeria is fully open for business,” the President said.
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