Nigeria Secures $2bn Gas Investment Deal with Shell

Nigeria has recorded another milestone in its gas sector as energy giant Shell announced a $2 billion investment in developing the HI Field, a shallow offshore Non-Associated Gas project located in OML 144.

According to a statement issued in Abuja by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the project is expected to deliver about 350 million standard cubic feet of gas per day by 2028. It marks Nigeria’s second major gas investment within 18 months, reflecting renewed investor confidence in the nation’s energy sector under President Bola Tinubu’s administration.

The statement noted that with this development, total upstream investment commitments through Final Investment Decisions (FIDs) have now exceeded $8 billion since 2023. President Tinubu welcomed the announcement, describing it as a validation of his administration’s energy reforms and Nigeria’s growing appeal to global investors.

“This major investment decision by Shell — their second in one year — reaffirms our reform efforts and demonstrates that Nigeria is open for business,” Tinubu said.

Discovered in 1985, the HI Field will supply almost one-third of the gas needed for Nigeria LNG Train 7, which aims to expand national LNG production capacity by 8 million metric tonnes per year, representing a 35 per cent increase. The project follows the Ubeta Non-Associated Gas and Bonga North Deepwater developments, making it the third major oil and gas FID in just 18 months.

The Special Adviser to the President on Energy, Olu Arowolo Verheijen, attributed the successful deal to recent policy initiatives such as Presidential Directive 40, which introduced a competitive fiscal framework for onshore and shallow offshore gas projects.

“With the Ubeta and HI FIDs, we’ve secured the gas supply needed to make NLNG Train 7 not only viable but transformative,” she noted, adding that the projects will boost LNG exports, expand domestic LPG availability, cut imports, and promote clean cooking for millions of households.

Shell’s Upstream President, Peter Costello, said the investment reinforces the company’s long-term commitment to Nigeria’s energy future, focusing on Deepwater and Integrated Gas opportunities.

The Presidency reiterated that the Tinubu administration remains dedicated to creating a business-friendly environment to attract more local and foreign investments and strengthen Nigeria’s position in the global gas market.