Nigeria has secured another major energy investment as Shell announced a $2 billion Final Investment Decision (FID) for a new offshore gas project in the HI Field, located in Oil Mining Lease (OML) 144.
The project, expected to deliver about 350 million standard cubic feet of gas per day (mmscf/d) from 2028, will supply nearly one-third of the feedgas required for the Nigeria LNG Limited (NLNG) Train 7 project.
According to the Presidency, the new development brings total upstream oil and gas investments approved since President Bola Tinubu took office in 2023 to over $8 billion, reflecting renewed investor confidence in Nigeria’s energy sector.
The HI project is the third major oil and gas FID in 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project. Combined, the HI and Ubeta fields are expected to provide up to 15 percent of NLNG’s total gas needs across Trains 1 to 7.
The Federal Government credited these investments to targeted industry reforms introduced under President Tinubu’s administration, including fiscal incentives, streamlined regulations, and faster approval processes. These reforms, now backed by legislation, aim to reduce costs and attract global energy investors.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the HI and Ubeta projects will secure gas supply for NLNG’s Train 7 expansion, enhance export reliability, and expand domestic LPG access. “These projects will reduce imports, boost foreign exchange earnings, and improve access to clean cooking energy for millions of Nigerian households,” she said.
Shell’s Upstream President, Peter Costello, reaffirmed the company’s commitment to Nigeria’s energy sector. “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.
President Tinubu welcomed Shell’s decision, describing it as evidence of growing confidence in Nigeria’s reforms and investment climate. “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,” he said.
The NLNG Train 7 expansion is projected to increase Nigeria’s LNG capacity by 8 million metric tonnes per year—about 35 percent of current production—while supporting job creation and economic growth in host communities.
By Bayo Onanuga
Special Adviser to the President (Information & Strategy)
October 14, 2025
