Nigeria Secures $2 Billion Shell Investment In Offshore Gas Project

Nigeria has secured a $2 billion investment from global energy company Shell for the development of the HI Field, a shallow offshore Non-Associated Gas project in OML 144. The announcement was made by Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy.

The project is expected to produce approximately 350 million standard cubic feet of gas per day (mmscf/d) from 2028. It marks Nigeria’s second major gas investment in 18 months, bringing total upstream commitments through Final Investment Decisions (FIDs) to over $8 billion since President Tinubu assumed office in 2023.

President Tinubu welcomed the development, describing it as a validation of his administration’s energy sector reforms and a signal of Nigeria’s attractiveness to international 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,” he said.

The HI project, originally discovered in 1985, will provide nearly one-third of the feedgas supply required for Nigeria LNG Train 7, which aims to expand the nation’s LNG production capacity by 8 million metric tonnes per year—a 35% increase in current output. Along with the Ubeta Non-Associated Gas project and the Bonga North deepwater development, HI is the third major oil and gas FID in 18 months. Combined, the HI and Ubeta projects are expected to supply up to 15% of NLNG’s total feedgas requirements across Trains 1 to 7.

Olu Arowolo Verheijen, Special Adviser to the President on Energy, said the projects are made possible by targeted reforms, including Presidential Directive 40, which introduced a competitive fiscal framework for onshore and shallow offshore gas projects. “These projects will strengthen Nigeria’s LNG exports, expand domestic LPG supply, reduce imports, and advance clean cooking access for millions of homes,” she said.

Shell’s Upstream President, Peter Costello, reiterated the company’s long-term commitment to Nigeria, emphasizing its focus on deepwater and integrated gas projects. The Presidency reaffirmed its commitment to fostering an environment that encourages both local and foreign investment in Nigeria’s energy sector.