• Landmark FID underscores renewed global investor confidence in Nigeria’s oil & gas sector

President Bola Tinubu, on Tuesday, welcomed Shell’s $2 billion Final Investment Decision (FID) on a new gas project in the HI shallow offshore field (OML 144), describing it as another decisive vote of confidence in Nigeria’s reform agenda.

The Non-Associated Gas (NAG) development will deliver around 350 million standard cubic feet of gas per day (mmscf/d) from 2028, nearly one-third of the feed gas needed for Nigeria LNG Limited’s Train 7 project.

The Shell FID brings total upstream investment commitments to more than $8 billion since President Tinubu assumed office in 2023, marking the third major oil and gas FID in just 18 months, after the Ubeta gas and Bonga North deepwater projects.

Together, the Ubeta and HI gas fields are expected to supply up to 15 per cent of NLNG’s total feedstock requirements (Trains 1–7).

Since 2024, the Tinubu administration has issued targeted presidential directives, coordinated by the Office of the Special Adviser on Energy, introducing unprecedented fiscal incentives, regulatory clarity, streamlined contracting, and shorter approval cycles.

Now embedded in legislation, these reforms have restored investor confidence and repositioned Nigeria as a competitive investment destination.

The three landmark FIDs—Ubeta, HI, and Bonga North—are “blueprint projects” strategically unlocked to drive the implementation of the presidential directives.

Specifically, the HI gas field, first discovered in 1985, is being developed under Presidential Directive 40, which created a globally competitive fiscal framework for onshore and shallow offshore gas projects.

Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the Ubeta and HI gas projects have secured the critical supply needed to make NLNG Train 7 “not just possible, but transformative.”

“These projects will strengthen the reliability of Nigeria’s LNG exports, expand domestic LPG supply, reduce imports, boost foreign exchange earnings, and advance clean cooking access for millions of households. And this is only the beginning; more FIDs are on the horizon,” she stated.

Shell’s Upstream President, Peter Costello, said the company remains committed to Nigeria’s energy sector.

 “Today’s announcement demonstrates our continued focus on deepwater and integrated gas. This project will help grow Shell’s leading Integrated Gas portfolio while supporting Nigeria’s ambition to become a more significant global LNG player,” he said.

The NLNG Train 7 expansion will add 8 million metric tonnes per annum to Nigeria’s LNG capacity, an increase of 35 per cent, reinforcing Nigeria’s role in global gas markets while creating jobs, driving economic growth, and boosting local enterprise in host communities.

President Tinubu reaffirmed his administration’s determination to sustain investor confidence and accelerate sectoral growth:  “Shell’s second major FID in one year is a clear validation of our wide-ranging reforms and a signal to the world that Nigeria is fully open for business and investment,” he said.