In a major boost to Nigeria’s energy industry, Shell Petroleum Development Company (SPDC) has announced a $2 billion Final Investment Decision (FID) for the development of a new offshore gas project in the HI Field, located in Oil Mining Lease (OML) 144.
The project, Shell’s second major investment in Nigeria in a year, will deliver around 350 million standard cubic feet of gas per day (mmscf/d) from 2028. That volume represents nearly one-third of the feedgas required by Nigeria LNG Limited’s (NLNG) Train 7 project, one of the country’s most significant gas expansion undertakings.
President Bola Tinubu hailed the announcement as a strong signal of renewed global investor confidence in Nigeria’s oil and gas sector, crediting ongoing reforms under his administration.
The HI gas project marks the third major upstream investment since Tinubu assumed office in 2023, following the Ubeta Non-Associated Gas project and the Bonga North deepwater development.
Combined, the three projects represent over $8 billion in new upstream investment commitments, according to a statement issued Monday by presidential spokesman Bayo Onanuga.
The Presidency noted that recent fiscal incentives, regulatory simplifications, and approval process reforms have restored confidence among international oil companies and repositioned Nigeria as a competitive energy investment destination.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the Shell decision as transformative for Nigeria’s gas supply framework.
“With the Ubeta and now the HI FIDs, we’ve secured the gas feedstock to make NLNG Train 7 not only possible but impactful,” Verheijen said. “These projects will boost Nigeria’s LNG exports, expand domestic LPG supply, and advance clean cooking access for millions of homes.”
Shell’s Upstream President, Peter Costello, reaffirmed the company’s long-term commitment to Nigeria’s energy future.
“Following the recent Bonga North FID, today’s decision reinforces our focus on deepwater and integrated gas,” Costello said. “The HI project will strengthen our global LNG portfolio while supporting Nigeria’s goal to become a leading player in the international gas market.”
The NLNG Train 7 expansion, which will raise Nigeria’s LNG production capacity by 8 million metric tonnes per annum, a 35 percent increase, is expected to create jobs, expand domestic gas supply, and generate billions in foreign exchange earnings.
President Tinubu, reacting to the announcement, said Shell’s renewed investment underscores the effectiveness of his administration’s reforms.
“This second major FID by Shell within a year validates our commitment to creating a world-class business environment,” Tinubu said. “Nigeria is fully open for investment and positioned for sustainable growth in the global energy market.”
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