Tinubu, Lokpobiri laud Shell’s $2bn Gas Project, say Nigeria open for business 

President Bola Tinubu has lauded Shell’s $2 billion Final Investment Decision (FID) on a new gas project in the shallow offshore HI Field, in OML 144, saying the move shows Nigeria is open for business.

Presidential spokesman ,Bayo Onanuga,in a statement  ,said 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.

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 Nigeria LNG Limited’s Train 7 project requirements.

Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell Plc, and Sunlink Energies and Resources Limited took the FID on the HI gas project offshore Nigeria.

On his part, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, also lauded the FID, describing it as a strong show of confidence in Nigeria’s oil and gas sector.

According to him, the move reflects the success of recent federal reforms introduced to attract investors and strengthen the nation’s energy industry

Senator Lokpobiri noted that Shell and its partners’ decision will further boost Nigeria’s oil production and create opportunities for jobs and sustainable development.

He added that Nigeria remains a preferred destination for energy investments, and more Final Investment Decisions are expected from other companies in the months ahead.

The federal government assured that it would continue to provide an enabling environment for investors while ensuring that such projects would benefit the Nigerian people and contribute to national prosperity.

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. It marks 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 feedgas requirements, covering Trains 1 to 7.

Since 2024, President Tinubu has 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 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.

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 investment and impact follow with the right policies in place.”

Shell’s Upstream president, Peter Costello, 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 Deepwater 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 the 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.

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”, President Tinubu said.

Author: Maureen Ikpeama