Following Shell’s final investment decision (FID) on the HI gas project, the presidency says Nigeria’s total upstream investment commitments have risen to $8 billion since President Bola Tinubu assumed office.
Earlier on Tuesday, Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, announced an FID on the HI offshore gas project in Nigeria.
The decision, taken in partnership with Sunlink Energies and Resources Limited, saw the injection of $2 billion in the shallow offshore HI field in OML 144.
Reacting to the development, the presidency said President Bola Tinubu welcomed Shell’s fresh investment, describing it as a validation of his reform agenda.
Advertisement
According to Bayo Onanuga, the president’s special adviser on information and strategy, Tinubu reiterated his administration’s commitment to creating an enabling environment for Nigeria’s domestic and foreign investors.
Onanuga said the announcement brings “total significant upstream investment commitments through FIDs in Nigeria’s oil and gas sector to over $8 billion since 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,” the statement reads.
Advertisement
“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.”
Onanuga said Tinubu has, since 2024, introduced targeted directives as part of the industry reforms led by the office of the special adviser to the president on energy.
He said the directives have introduced “unprecedented” fiscal incentives, regulatory clarity, simplified operating processes, cutting contracting costs, and reducing approval cycle times.
“These reforms, now embedded in legislation, have restored investor confidence and repositioned Nigeria as a competitive investment destination,” he said.
Advertisement
“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.”
Olu Arowolo Verheijen, special adviser to the president on energy, said the Ubeta and HI FIDs have secured the gas supply required to make the NLNG Train 7 project not only possible but transformative.
She said the projects would enhance the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use.
Advertisement
This, the special adviser said, would help to reduce imports, boost foreign exchange (FX) earnings, and “advance clean cooking access for millions of Nigerian households”.
“This is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow,” Verheijen said.
Advertisement
According to the statement, the NLNG Train 7 project is expected to boost Nigeria’s LNG production capacity by 8 million metric tonnes annually, representing a 35 percent increase from current output.
The presidency noted that the project will strengthen Nigeria’s position in the global gas market, enhance domestic gas availability, create jobs, drive economic growth, and stimulate small and medium enterprises (SMEs) in host communities.
Advertisement
