ABUJA, Nigeria (VOICE OF NAIJA)-Nigeria has recorded another significant milestone in its gas industry as global energy giant Shell announced a $2 billion investment for the development of the HI Field, a shallow offshore Non-Associated Gas project located in OML 144.
The disclosure was made by the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, in a statement issued on Tuesday in Abuja.
According to the Presidency, the project which is expected to produce about 350 million standard cubic feet of gas per day (mmscf/d) by 2028 marks Nigeria’s second major gas investment in 18 months, reflecting renewed international confidence in the nation’s oil and gas sector under President Tinubu’s administration.
The statement added that the new investment brings total upstream commitments through Final Investment Decisions (FIDs) to over $8 billion since Tinubu assumed office in 2023.
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Welcoming the announcement, President Tinubu described the investment as a reaffirmation of his administration’s energy sector reforms and a testament to Nigeria’s attractiveness to global 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,” Tinubu was quoted as saying.
Discovered in 1985, the HI Gas Project will supply nearly one-third of the feedgas required for Nigeria LNG Train 7, which aims to boost the country’s LNG production capacity by 8 million metric tonnes per annum a 35 per cent increase in current output.
The Presidency noted 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.
Combined, the HI and Ubeta projects are projected to contribute up to 15 per cent of NLNG’s total feedgas needs across Trains 1 to 7.
The Special Adviser to the President on Energy, Olu Arowolo Verheijen, attributed the achievement to the administration’s targeted energy 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 needed to make NLNG Train 7 not just possible, but transformative.
“These projects will strengthen Nigeria’s LNG exports, expand LPG supply for domestic use, reduce imports, and advance clean cooking access for millions of homes,” she was quoted to have said.
Shell’s Upstream President, Peter Costello, also expressed confidence in Nigeria’s energy future, noting that the investment reflects the company’s long-term commitment to the country.
“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,” he said.
The Presidency reaffirmed that the Tinubu administration remains committed to maintaining a conducive investment environment that supports both local and foreign investors, positioning Nigeria as a competitive force in the global gas market.