…..?Over $8 Billion in Upstream Oil and Gas Investments Since 2023 Signal Renewed Trust in Nigeria’s Energy Reforms
President Bola Ahmed Tinubu has welcomed Shell’s $2 billion Final Investment Decision (FID) on the development of a new offshore gas project in the shallow-water HI Field (OML 144), describing it as another milestone in his administration’s drive to unlock Nigeria’s vast gas potential.
According to a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the Non-Associated Gas (NAG) project is expected to deliver about 350 million standard cubic feet of gas per day (mmscf/d) from 2028 — equivalent to nearly one-third of the gas requirement for the Nigeria LNG Limited’s Train 7 project.
With this latest decision, total upstream investment commitments in Nigeria’s oil and gas sector have surpassed $8 billion since President Tinubu assumed office in 2023 — a strong signal of renewed global investor confidence and the success of ongoing reforms in the sector.
This 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. Together, the Ubeta and HI gas projects are projected to supply up to 15 percent of NLNG’s total feedgas requirements, supporting both domestic energy security and export growth.
President Tinubu’s administration has, since 2024, issued targeted industry reform directives — coordinated through the Office of the Special Adviser to the President on Energy — introducing fiscal incentives, regulatory clarity, faster approval cycles, and lower contracting costs. These measures, now enshrined in legislation, have repositioned Nigeria as a competitive global investment destination.
The HI Gas Field, originally discovered in 1985, is being developed under Presidential Directive 40, which created a competitive fiscal framework for Non-Associated Gas projects in onshore and shallow offshore zones.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the new investment as a game-changer:
“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 while expanding LPG supply for domestic use — reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerians. And this is only the beginning; more FIDs are on the horizon.”
Peter Costello, Shell’s Upstream President, reaffirmed the company’s long-term commitment to Nigeria’s energy future:
“Following recent decisions on the Bonga Deepwater development, today’s announcement demonstrates Shell’s continued confidence in Nigeria’s energy sector. This project will expand our Integrated Gas portfolio while supporting Nigeria’s ambition to become a leading global LNG player.”
The NLNG Train 7 expansion will increase Nigeria’s LNG production capacity by 8 million metric tonnes per year, representing a 35 percent boost to current output. The project is expected to create jobs, enhance domestic gas availability, stimulate SME growth, and strengthen Nigeria’s position in the global gas value chain.
President Tinubu reaffirmed his administration’s commitment to maintaining a stable and transparent investment climate, stating:
“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.”
About the Author
