Global energy giant Shell has announced a $2 billion investment in the development of the HI Field, a shallow offshore Non-Associated Gas project located in OML 144, Nigeria.
This significant investment brings the total upstream investment commitments in Nigeria’s oil and gas sector to over $8 billion since President Bola Tinubu assumed office in 2023.
According to a statement by Mr. Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy, the project is expected to deliver approximately 350 million standard cubic feet of gas per day (mmscf/d) from 2028.
“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, highlighting the administration’s efforts to attract foreign investment.
The HI gas project will contribute nearly one-third of the feedgas supply required for Nigeria LNG Train 7, which aims to expand the nation’s LNG production capacity by 8 million metric tonnes per annum, a 35% increase in current output.
The project is expected to strengthen Nigeria’s LNG exports, expand LPG supply for domestic use, reduce imports, and advance clean cooking access for millions of households.
Shell’s Upstream President, Peter Costello, emphasized the company’s long-term commitment to Nigeria’s energy sector, citing the importance of Deepwater and Integrated Gas.
The investment demonstrates Shell’s confidence in Nigeria’s energy future and its potential for growth.
With this latest announcement, Nigeria has secured its third major oil and gas FID in 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater development.
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