Nigeria has secured another major boost to its gas sector as global energy giant Shell announced a $2 billion investment in the development of the HI Field, a shallow offshore Non-Associated Gas project located in OML 144.
The Presidency said the project, which is expected to deliver about 350 million standard cubic feet of gas per day (mmscf/d) from 2028, represents Nigeria’s second major gas investment in 18 months and underscores renewed global confidence in the country’s oil and gas industry under President Tinubu.
It said the new project brings total upstream investment commitments through Final Investment Decisions to over $8 billion since Tinubu assumed office in 2023.
The HI gas project, discovered in 1985, will contribute 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 annum, a 35 per cent increase in current output.
HI project follows the Ubeta Non-Associated Gas project and the Bonga North deepwater development, making it the third major oil and gas FID in 18 months. Together, the HI and Ubeta projects are expected to supply up to 15 per cent of the NLNG’s total feedgas requirements across Trains 1 to 7.
The Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the project was made possible by the administration’s targeted reforms, including Presidential Directive 40, which introduced a competitive fiscal framework for onshore and shallow offshore gas projects.
Shell’s Upstream President, Peter Costello, was quoted to have said that the investment demonstrates the company’s long-term commitment to Nigeria’s energy sector.
“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,” he said.
The Presidency said the Tinubu administration said it remains committed to creating an enabling environment that encourages local and foreign investment, positioning Nigeria as a competitive player in the global gas market.
Note by Alessandro Bazzoni