By Ajibola Olaide, JKNewsMedia Reporter
ENERGY DEVELOPMENT gained renewed traction as President Bola Tinubu welcomed Shell’s Final Investment Decision (FID) for a $2 billion gas project in the shallow offshore HI Field within Oil Mining Lease (OML) 144.
The project, classified as a Non-Associated Gas (NAG) development, is expected to deliver around 350 million standard cubic feet of gas per day (mmscf/d) from 2028, a volume nearly equivalent to one-third of the feedstock requirement of Nigeria LNG Limited’s Train 7 project.
The announcement strengthens Nigeria’s position as a reliable gas supplier to both domestic and international markets.
According to the Presidency, the decision brings total upstream investment commitments in Nigeria’s oil and gas sector to over US$8 billion since President Tinubu assumed office in 2023.
This, it noted, reflects renewed investor confidence in the country’s energy reforms and underscores the effectiveness of the administration’s policies to attract long-term capital into the sector.
The HI Field FID represents Nigeria’s third major oil and gas investment approval within 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project.
Both the Ubeta and HI developments are positioned to jointly supply up to 15 percent of the Nigeria LNG’s total feedgas requirements, serving Trains 1 through 7.
Since 2024, President Tinubu has introduced targeted reforms under the Office of the Special Adviser to the President on Energy to streamline operations across the oil and gas value chain.
These directives, which have since been legislated, include fiscal incentives, regulatory clarity, simplified contracting procedures, cost reductions, and shorter approval timelines, all designed to reposition Nigeria as a competitive global investment destination.
The three landmark projects namely, HI, Ubeta, and Bonga North are regarded as blueprint initiatives identified and unlocked by the Federal Government to advance the implementation of the presidential energy directives.
The development of the HI gas field, first discovered in 1985, has been made possible through Presidential Directive 40, which established a new fiscal framework for Non-Associated Gas projects in onshore and shallow offshore terrains.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the development as a crucial milestone for Nigeria’s gas aspirations. “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,” she said. “
These projects will significantly strengthen the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use, reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households.
A statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy, on 14 October 2025 notes that “this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow.”
Shell’s Upstream President, Peter Costello, reaffirmed the company’s commitment to Nigeria’s energy development, noting that the new decision complements its recent investment approvals in the Bonga deepwater project.
“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 stated.
“This Upstream project will help Shell grow our leading Integrated Gas portfolio while supporting Nigeria’s plans to become a more significant player in the global LNG market.”
The NLNG Train 7 expansion project, designed to add 8 million metric tonnes per annum to Nigeria’s existing LNG capacity, a 35 percent increase, is projected to boost domestic gas utilisation, create thousands of direct and indirect jobs, stimulate small and medium-scale enterprises in host communities, and expand Nigeria’s role in the global gas value chain.
President Tinubu reaffirmed his administration’s commitment to sustaining reforms that create a conducive climate for both domestic and foreign 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,” the President said.
