Sign in Subscribe
Natural gas

President Tinubu Commends Shell's $2 Billion Investment Decision in Nigeria's Oil and Gas Sector

Strategic Insights

— 2 min read

Nigeria has received a major boost to its energy ambitions with Shell's approval of a $2 billion Final Investment Decision (FID) for a new gas development project in the shallow offshore HI Field under Oil Mining Lease (OML) 144. This announcement follows over $8 billion worth of major FIDs in Nigeria's upstream oil and gas sector since President Tinubu took office. The president has welcomed the investment, describing it as a major boost to Nigeria's energy ambitions and aligning with his administration's efforts to expand domestic gas production and strengthen the country's position in the global liquefied natural gas (LNG) market.

Key Takeaways:

  • The $2 billion gas development project in the HI Field 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.
  • This is the third major oil and gas FID in the last 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project, and underscores the success of President Tinubu's reform agenda and the renewed confidence of global investors.
  • The total significant upstream investment commitments through FIDs in Nigeria's oil and gas sector since President Tinubu assumed office is over $8 billion, demonstrating the president's efforts to create an enabling environment for Nigeria's domestic and foreign investors.
  • The new Non-Associated Gas (NAG) development project will strengthen Nigeria's LNG exports to global markets, expand LPG supply for domestic use, and reduce imports, boosting foreign exchange earnings and advancing clean cooking access for millions of Nigerian households.
  • The project is a clear validation of President Tinubu's wide-ranging reform efforts, signaling to the world that Nigeria is fully open for business and investment.
  • President Tinubu has committed to creating an enabling environment for domestic and foreign investors, and his administration's reform agenda has restored investor confidence and repositioned Nigeria as a competitive investment destination.

Statistics:

  • The new gas development project will deliver approximately 350 million standard cubic feet of gas per day (mmscf/d) from 2028.
  • The total significant upstream investment commitments through FIDs in Nigeria's oil and gas sector since President Tinubu assumed office is over $8 billion.
  • Nigeria LNG Limited's Train 7 project will expand Nigeria's LNG production capacity by 8 million metric tonnes annually, 35% of current production.
  • The $2 billion gas development project is the third major oil and gas FID in the last 18 months.

Sources:

  • Voice of Nigeria, 14 Oct 2025
  • Presidential Spokesperson, Mr Bayo Onanuga
  • Special Adviser to the President on Energy, Olu Arowolo Verheijen
  • Shell's Upstream President, Peter Costello

Read more