President Tinubu Welcomes Shell’s $2bn Offshore Gas Project, Second Major Gas Investment In 18 Months

FUNSHO AROGUNDADE

President Bola Ahmed Tinubu has welcomed the news of Shell’s $2 billion Final Investment Decision (FID) on a new gas project in the shallow offshore HI Field, in OML 144.

The new Non-Associated Gas (NAG) development project announced Tuesday by Shell Nigeria Exploration and Production Company Limited (SNEPCo) — a subsidiary of Shell plc—, together with Sunlink Energies and Resources Limited, 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 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.

Production is expected to begin before the end of this decade.

This project will contribute 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.

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.

Meanwhile, today’s announcement brings total significant upstream investment commitments through Final Investment Decisions (FIDs) in Nigeria’s oil and gas sector to over $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.”

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 said.