Nigeria secures $2bn investment in major offshore gas project   –Official

*The Federal Government says the announcement has brought total significant upstream investment commitments through Final Investment Decisions in Nigeria’s oil and gas sector to over US $8 billion since 2023

Isola Moses | ConsumerConnect

President Bola Ahmed Tinubu has welcomed Shell’s $2 billion Final Investment Decision (FID) in a new gas project in the shallow offshore HI Field, in OML 144.

The new Non-Associated Gas (NAG) development project will deliver approximately 350 million standard cubic feet of gas per day (mmscf/d) from 2028, equivalent to almost a third of the requirements of Nigeria LNG Limited’s Train 7 project.

The government said the announcement brought total significant upstream investment commitments through Final Investment Decisions (FIDs) in Nigeria’s oil and gas sector to over US $8 billion since President Tinubu assumed office in 2023, underscoring the success of his reform agenda and the renewed confidence of global investors.

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Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, who stated this Tuesday, October 14, 2025, said the investment decision was Nigeria’s third major oil and gas FID in the last 18 months.

That was after the Ubeta Non-Associated Gas project and the Bonga North deepwater project.

The government stated the development marked yet another milestone in Nigeria’s journey to unlock its abundant gas resources for domestic and export use.

The statement explained the Ubeta and HI gas projects can supply up to 15 percent of the NLNG’s total feedgas requirements, covering Trains 1 to 7.

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.

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These directives have introduced unprecedented fiscal incentives, regulatory clarity, operating process simplification, cutting contracting costs, and reducing approval cycle times.

The Federal further stated that the 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.

Speaking on the development, Olu Arowolo Verheijen, Special Adviser to President Tinubu on Energy, was quoted to have 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 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.”

Verheijen said: ” And this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow.”

In his remarks, Peter Costello, Shell’s Upstream President, said: “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.

Costello 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.”

According to the government, the NLNG Train 7 project will expand Nigeria’s LNG production capacity by 8 million metric tonnes annually, 35 percent of current production.

Besides 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.

President Tinubu reiterated his administration’s commitment to creating an enabling environment for Nigeria’s domestic and foreign investors.

Tinubu stated: “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.”

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