Nigeria has recorded another major breakthrough in its oil and gas sector as Shell announces a $2 billion investment in a new offshore gas project, marking the second major gas deal in 18 months.
President Bola Ahmed Tinubu welcomed the development, describing it as a major boost to his administration’s economic reform agenda and a clear sign of renewed global investor confidence.
According to Mediaplusng.com, the project — located in the shallow offshore HI Field in OML 144 — will produce about 350 million standard cubic feet of gas per day (mmscf/d) from 2028. This is almost one-third of the gas needed for the Nigeria LNG Limited Train 7 project, one of the country’s biggest gas export ventures.
Tinubu’s Reforms Attract Over $8 Billion Investments
With this announcement, Nigeria’s total investment commitments in the upstream oil and gas sector have now surpassed $8 billion since President Tinubu assumed office in 2023. This includes the Ubeta Non-Associated Gas project and the Bonga North deepwater project—three major Final Investment Decisions (FIDs) secured within 18 months.
Experts say these projects are part of the government’s strategy to unlock Nigeria’s rich gas reserves for both domestic and export use. Combined, the Ubeta and HI gas fields can provide up to 15 percent of the total gas supply needed by NLNG’s Trains 1 to 7, a major win for Nigeria’s energy sector.
Reforms Driving Investor Confidence
Since 2024, the Federal Government has rolled out a series of energy sector reforms led by the Office of the Special Adviser to the President on Energy. These include new fiscal incentives, simplified regulatory processes, reduced contracting costs, and faster approval times—reforms that have now been embedded into law.
According to Mediaplusng.com, these reforms have helped rebuild investor trust and reestablish Nigeria as a competitive global energy destination.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the HI and Ubeta projects are vital to ensuring a reliable gas supply for NLNG Train 7, boosting export capacity and improving domestic access to clean energy.
“These projects will expand LPG supply, reduce imports, increase foreign exchange earnings, and advance clean cooking access for millions of households. And this is just the beginning,” Verheijen said.
Shell Reaffirms Commitment to Nigeria
Shell’s Upstream President, Peter Costello, said the investment reinforces the company’s long-term commitment to Nigeria’s energy future.
“This project supports Nigeria’s ambition to play a larger role in the global LNG market,” Costello stated, highlighting Shell’s focus on deepwater and integrated gas development.
Nigeria Open for Business
President Tinubu, while celebrating the investment, emphasized that his government remains committed to creating an enabling environment for both local and international investors.
“This second major FID from Shell in one year is proof that our reforms are working,” he said. “It is a message to the world that Nigeria is open for business and investment.”
The NLNG Train 7 project is expected to increase Nigeria’s LNG production by 8 million metric tonnes per year, expand local gas access, create jobs, and strengthen the economy—further positioning Nigeria as a major player in the global gas industry.
