Yemi Obafemi
Nigeria has recorded another major breakthrough in its oil and gas sector as Shell announced a $2 billion Final Investment Decision (FID) for a new Non-Associated Gas (NAG) project in the shallow offshore HI Field, OML 144, marking the country’s second major gas investment in 18 months.
President Tinubu hailed Shell’s investment as a validation of his administration’s reforms. “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,” he said.
In a statement issued on Tuesday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, Tinubu said the project represents another step forward in the country’s energy reform agenda, which has attracted over $8 billion in major upstream oil and gas investments since he assumed office in 2023.
According to the statement, the new 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 gas feed required by Nigeria LNG Limited’s Train 7 project.
“This investment decision is Nigeria’s third major oil and gas FID in the last 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project,” the statement read. “It marks yet another milestone in Nigeria’s journey to unlock its abundant gas resources for domestic and export use.”
The statement highlighted that the Ubeta and HI gas projects could collectively supply up to 15 percent of NLNG’s total feedgas needs, strengthening the country’s position as a leading LNG supplier.
Since 2024, President Tinubu has issued targeted directives as part of the industry reform coordinated by the Office of the Special Adviser to the President on Energy. These directives have introduced unprecedented fiscal incentives, regulatory clarity, operating process simplification, cutting contracting costs, and reducing approval cycle times.
These reforms, now embedded in legislation, have restored investor confidence and repositioned Nigeria as a competitive investment destination.”
The three landmark FIDs the HI and Ubeta gas projects, and Bonga North deepwater represent blueprint projects selected and unlocked by the Federal Government to drive the implementation of the presidential directives.
Specifically, the development of the HI gas field discovered four decades ago, 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.
President Tinubu hailed Shell’s investment as a validation of his administration’s reforms.
“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,” he said.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, noted that the Ubeta and HI gas projects would provide the critical gas supply needed to make NLNG Train 7 not only possible but transformative.
“These projects will strengthen Nigeria’s LNG export reliability while expanding LPG supply for domestic use reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households,” she stated.
Shell’s Upstream President, Peter Costello, also reaffirmed the company’s long-term commitment to Nigeria’s energy sector.
“Following recent investment decisions related to the Bonga deepwater development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas,” he said.
The NLNG Train 7 project will expand Nigeria’s LNG production capacity by 8 million metric tonnes annually, 35 percent of current production. In addition to reinforcing Nigeria’s position in the global gas supply value chain, it will expand domestic gas supply, support job creation, catalyse economic growth, and stimulate SMEs in host communities.
