President Tinubu secures Shell’s $2bn offshore gas investment, boosting Nigeria’s energy drive

By Kunle Sanni –

President Bola Tinubu has welcomed a major boost to Nigeria’s energy sector as Shell announced a $2 billion Final Investment Decision (FID) for the development of the HI offshore gas field in OML 144, marking the country’s second major gas investment in 18 months under his administration.

Presidential spokesman, Bayo Onanuga, in a statement on Tuesday, said the project reflects renewed global investor confidence in Nigeria’s oil and gas industry, with total upstream investment commitments now exceeding $8 billion since President Tinubu assumed office in 2023.

The new Non-Associated Gas (NAG) development will produce about 350 million standard cubic feet of gas per day (mmscf/d) from 2028 — nearly a third of the gas required for Nigeria LNG Limited’s Train 7 project.

“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,” President Tinubu said.

The HI project is the latest in a string of landmark investment approvals, following the Ubeta Non-Associated Gas and Bonga North deepwater projects. Together, the Ubeta and HI gas fields could supply up to 15 percent of NLNG’s total feed gas requirements, serving Trains 1 through 7.

According to the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, the developments stem from President Tinubu’s industry reforms, which introduced fiscal incentives, streamlined regulatory processes, and improved investment conditions.

“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,” Verheijen said. “These projects will strengthen the reliability of Nigeria’s LNG exports, boost foreign exchange earnings, and expand LPG access for domestic use.”

Shell’s Upstream President, Peter Costello, said the company remains committed to Nigeria’s long-term energy development.
“Today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on deepwater and integrated gas,” he noted.