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Anthony Ufoh
The Federal Government has announced a major investment in the petroleum sector as Shell’s $2 billion Final Investment Decision (FID) in the shallow offshore HI Field in OML 144 has been finalised.
This feat was achieved under President Bola Ahmed Tinubu’s Renewed Global Investment Confidence plan.
This was announced by Special Adviser to the president on Information and Strategy, Bayo Onanuga, on his X account (formerly Twitter) in a StateHouse Press release.
The statement read, “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 announcement brings 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.
“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. It marks yet another milestone in Nigeria’s journey to unlock its abundant gas resources for domestic and export use. 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. These directives have introduced unprecedented fiscal “incentives, regulatory clarity, operating process simplification, cutting contracting costs, and reducing approval cycle times.
Olu Arowolo, President Tinubu’s Special Adviser on Energy stated that with the move, there would be abundant of gas for NLNG’s transformation.
Arowolo 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. And this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow.”
Shell’s Upstream President, Peter Costello, on his part stated that the move represents his organisation’s commitment to the nation’s energy needs.
Costello, 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.
“ 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 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.
President Tinubu reiterates his administration’s commitment to creating an enabling environment for Nigeria’s domestic and foreign investors.
“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 says.
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