.Over $8bn in major upstream oil and gas FID signals renewed global investor confidence
UGO AMADI
The Federal Government has welcomed Shell Nigeria’s announcement of a $2 billion Final Investment Decision (FID) for the HI Field offshore project in Oil Mining Lease (OML) 144.
This significant investment is a testament to Nigeria’s attractive energy investment climate and the government’s commitment to driving sustainable growth in the sector.
The project, a joint venture between Shell Nigeria Exploration and Production Company (SNEPCo) and Sunlink Energies Resources Limited, is expected to boost Nigeria’s energy production and reinforce investor confidence.
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.
The announcement brings 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.
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 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.
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 with the right policies in place, investment and impact follow.”
However, Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), praised the development as a direct result of the Federal Government’s bold reforms and policies aimed at enhancing investor confidence and attracting capital inflows into Nigeria’s oil and gas industry.
“This $2 billion investment reaffirms Nigeria’s position as a preferred destination for energy investment and highlights the value of collaboration
Between government and industry,” the Minister noted. “We anticipate that more Final Investment Decisions from other investors will follow in the coming months as confidence in our sector continues to grow.”
The Federal Government remains committed to fostering an enabling environment for investment and ensuring that the benefits of such strategic partnerships translate into increased national prosperity, job creation, and sustainable energy development, that statement said.
Peter Costello, Shell’s Upstream President, 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 percent 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.
President Tinubu reiterates 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 says..
It would be recalled that Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, together with Sunlink Energies and Resources Limited, have taken a final investment decision (FID) on the HI gas project offshore Nigeria.
When completed, the project will supply 350 million standard cubic feet (approximately 60 thousand barrels of oil equivalent) of gas per day at peak production to Nigeria LNG (NLNG; Shell interest 25.6%), which produces and exports liquified natural gas (LNG) to global markets. Production is expected to begin before the end of this decade.
“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,” said Peter Costello, Shell’s Upstream President. “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 increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, is in line with Shell’s plans to grow its global LNG volumes by an average of 4-5% per year until 2030. It will also bolster NLNG’s contribution to Nigeria’s national economic development goals, including jobs in construction and operations.
The HI field was discovered in 1985 and lies in 100m of water depth around 50km from the shore. The current estimated recoverable resource volumes of the HI project are approximately 285 mmboe (million barrels of oil equivalent).
The HI project is part of a joint venture between Sunlink Energies and Resources Limited (60%) and SNEPCo (40%).
The production associated with this project will be reported through Shell’s Upstream segment.
The project consists of a wellhead platform with four wells, to be installed at the HI field location, a pipeline to transport the multiphase gas to onshore at Bonny, and a gas processing plant at Bonny, from where the processed gas will be transported to NLNG and the condensate to the Bonny Oil and Gas Export Terminal.
The estimated peak production and current estimated recoverable resources presented above are 100% total gross figures. Current estimated recoverable resource volumes are a P50 estimate under the Society of Petroleum Engineers’ Petroleum Resources Classification System. P50 means there is a 50% probability of the estimate being lower and a 50% probability of being higher.
This project contributes to Shell’s Capital Market Day 2025 commitment to deliver upstream and integrated gas projects coming on stream between 2025 to 2030 with a total peak production of more than 1 million barrels of oil equivalent per day (boe/d). This also supports Shell’s intent to grow top line production across our combined Upstream and Integrated Gas business by 1% per year to 2030.
LNG plays a key role in the energy transition, producing less greenhouse gas emissions than coal when used to generate electricity, and less emissions than petrol or diesel when used for transport fuel.
Shell took a final investment decision on the Bonga North project in December 2024 and recently increased its stake in the Bonga field, consistent with the company’s intention to be a continued disciplined investor in Nigeria’s energy sector through its Deep Water and Integrated Gas businesses
