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Shell Stakes $2 Billion in Gas Project, Boosts Nigeria’s Energy Sector

Nigeria has secured another major investment in its oil and gas industry as Shell Petroleum Development Company (SPDC) announced a $2 billion Final Investment Decision (FID) for a new offshore gas project in the HI Field, located within OML 144.

 

The announcement was made on Monday, October 14, 2025, by Bayo Onanuga, Special Adviser to the President on Information and Strategy, in an official statement from the Presidency.

 

The project, which is expected to deliver about 350 million standard cubic feet of gas per day from 2028, will supply nearly one-third of the gas requirements for Nigeria LNG Limited’s Train 7 project.

 

With this latest move, total major upstream investment commitments in Nigeria’s oil and gas sector have now exceeded $8 billion since President Bola Ahmed Tinubu took office in 2023, reflecting renewed confidence from global investors.

 

The development marks Nigeria’s third major oil and gas FID in 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project.

 

Combined, the Ubeta and HI gas projects could provide up to 15 percent of NLNG’s total feedgas supply across Trains 1 to 7.

 

Since 2024, President Tinubu has implemented targeted reforms coordinated by the Office of the Special Adviser on Energy, introducing fiscal incentives, regulatory clarity, reduced contracting costs, and shorter approval timelines.

 

These measures, now backed by law, have helped reposition Nigeria as a competitive destination for energy investments.

 

Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the latest milestone will strengthen both domestic and export gas supply.

 

“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,” she said. “These projects will enhance the reliability of LNG exports, expand LPG supply for local use, reduce imports, boost foreign exchange, and improve clean cooking access for millions of Nigerians.”

 

Shell’s Upstream President, Peter Costello, said the investment reflects the company’s continued commitment to Nigeria’s energy sector. “Following recent decisions on the Bonga deepwater development, today’s announcement demonstrates our focus on Deepwater and Integrated Gas while supporting Nigeria’s ambition to become a stronger player in the global LNG market,” he said.

 

The HI Field, discovered in 1985, is being developed under Presidential Directive 40, which created a more competitive framework for Non-Associated Gas projects in onshore and shallow offshore fields.

 

President Tinubu welcomed Shell’s decision, describing it as proof that his administration’s reforms are working.

 

“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.

Rachel Akper

Rachel Akper

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