Mkpoikana Udoma
Port Harcourt — Nigeria’s energy reforms under President Bola Tinubu are gaining momentum as Shell has announced a $2 billion Final Investment Decision, FID, for the development of the HI offshore gas field within the Oil Mining Lease, OML, 144, a landmark project that will deliver 350 million standard cubic feet of gas per day, mmscfd, from 2028.
The project, jointly developed by Shell Nigeria Exploration and Production Company Limited, SNEPCo, and Sunlink Energies and Resources Limited, is the third major FID in Nigeria’s oil and gas sector within 18 months, following the Ubeta Non-Associated Gas and Bonga North Deepwater projects, bringing total upstream investment commitments to over $8 billion since Tinubu assumed office in 2023.
President Tinubu described the development as “a clear validation of Nigeria’s reform efforts” and a strong signal that the country is “fully open for business and investment.”
“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,” Tinubu said.
According to Shell, the HI project, located in OML 144 offshore Bayelsa State, will produce about 350mmscfd of gas, equivalent to almost a third of the feedgas required for Nigeria LNG Limited’s Train 7. 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 HI gas field was discovered in 1985 and lies about 50 kilometres from the coast at a water depth of 100 metres. It is expected to deliver an estimated 285 million barrels of oil equivalent, mmboe, in recoverable reserves. The project will consist of a wellhead platform with four production wells, a subsea pipeline network to Bonny Island, and a new onshore gas processing plant.
According to Shell, the project will contribute significantly to Nigeria’s LNG export capacity and economic development, aligning with its global strategy to grow LNG output by 4–5 percent annually until 2030.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the series of FIDs demonstrates the success of Nigeria’s targeted reforms designed to attract investment, expand gas supply, and unlock the country’s industrial potential.
“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,” Verheijen said.
“These projects will 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 Nigerian households.”
The HI FID as a strong endorsement of the government’s policy direction under the Presidential Directive 40, which established a competitive fiscal framework for Non-Associated Gas development in onshore and shallow offshore fields.
According to Verhiejen, the Tinubu administration has implemented sweeping energy sector reforms, including new fiscal incentives, regulatory clarity, streamlined contracting processes, and reduced approval cycle times, to rebuild investor confidence and unlock capital inflows.
“These landmark projects, the HI and Ubeta gas projects and the Bonga North deepwater, represent the blueprint for our industrial gas expansion,” Verheijen added.
“And this is only the beginning; more FIDs are on the horizon as we unlock Nigeria’s vast gas potential to drive industrialisation and create jobs.”
