Hot Source* Tinubu welcomes development
* Over $8bn investment in major upstream oil and gas final investment decisions under Tinubu signals renewed global investor confidence
Deji Elumoye in Abuja
President Bola Tinubu has applauded the news of Shell’s $2 billion Final Investment Decision (FID) on a new gas project in the shallow offshore HI Field, in OML 144.
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.
According to a statement issued on Tuesday by presidential spokesperson, Bayo Onanuga, the announcement brings the 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.
President Tinubu reiterated 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,” the president said.
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 deep water 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 per cent of the NLNG’s total feed gas requirements, covering Trains 1 to 7.
Since 2024, President Tinubu had 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.
These reforms, now embedded in legislation, have restored investor confidence and repositioned Nigeria as a competitive investment destination.
The three landmark FIDs—the HI and Ubeta gas projects, and Bonga North deep water —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.
The Special Adviser to President Tinubu on Energy, Olu Arowolo Verheijen, 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, also 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 Deep-water 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 per cent 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.
