Nigeria Secures $2Bn Shell Gas Investment in New Offshore Gas Project

Nigeria has secured its second major gas investment in 18 months with Shell’s $2 billion Final Investment Decision (FID) for a new offshore gas project in the HI Field, OML 144. The announcement which was made known via a statement by the Special Adviser to the President on Information & Strat...

Nigeria has secured its second major gas investment in 18 months with Shell’s $2 billion Final Investment Decision (FID) for a new offshore gas project in the HI Field, OML 144.

The announcement which was made known via a statement by the Special Adviser to the President on Information & Strategy, Bayo Onanuga, on Tuesday, October 14, comes as part of a broader wave of upstream oil and gas investments exceeding $8 billion since President Bola Ahmed Tinubu assumed office in 2023.

The new Non-Associated Gas (NAG) development is expected to produce approximately 350 million standard cubic feet of gas per day (mmscf/d) from 2028, providing nearly a third of the feedgas requirements for Nigeria LNG Limited’s Train 7 project.

This investment marks Nigeria’s third major oil and gas FID in the last 18 months, following the Ubeta NAG project and the Bonga North deepwater project, further unlocking Nigeria’s abundant gas resources for both domestic and export use. Combined, the HI and Ubeta projects will supply up to 15 percent of NLNG’s total feedgas requirements for Trains 1 to 7.

Since 2024, President Tinubu’s administration, through the Office of the Special Adviser on Energy, has implemented a series of industry reforms aimed at attracting investment. These include fiscal incentives, regulatory clarity, simplification of operating processes, reduced contracting costs, and shortened approval cycles. According to the government, these reforms—now embedded in legislation—have repositioned Nigeria as a competitive destination for global energy investment.

The development of the HI gas field, originally discovered in 1985, is being enabled by Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.

Olu Arowolo Verheijen, Special Adviser to the President on Energy, said, “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. These projects will strengthen the reliability of Nigeria’s LNG exports while expanding LPG supply for domestic use — reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households. And this is only the beginning; more FIDs are on the horizon.”

Peter Costello, Shell’s Upstream President, added, “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. 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 project will increase Nigeria’s LNG production capacity by 8 million metric tonnes annually, equivalent to 35 percent of current production. The project is expected to enhance domestic gas supply, create jobs, stimulate economic growth, and support SMEs in host communities.

President Tinubu welcomed the announcement, emphasizing that Shell’s investment is a validation of the administration’s reforms and a clear signal that Nigeria is “fully open for business and investment.”