President Bola Tinubu has hailed the $2 billion Final Investment Decision (FID) taken by Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Sunlink Energies and Resources Limited on the HI Gas Project offshore Nigeria, describing it as a major boost to the nation’s energy sector.
The project, located in the HI field of OML 144, is expected to deliver 350 million standard cubic feet (mmscf) of gas per day at peak production roughly 60,000 barrels of oil equivalent to Nigeria LNG (NLNG) for export to global markets. Production is projected to begin before the end of this decade.
President Tinubu, in a statement by his spokesman Bayo Onanuga, said the investment underscores renewed global confidence in Nigeria’s oil and gas industry following his administration’s reform-driven investment agenda.
“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 stated.
The President noted that the HI Gas Project marks Nigeria’s third major oil and gas FID in 18 months, following the Ubeta Non-Associated Gas Project and the Bonga North Deepwater Project. Together, these projects represent more than $8 billion in new upstream investments since Tinubu took office in 2023.
Shell’s Commitment to Nigeria’s Gas Growth
Shell’s Upstream President, Peter Costello, said the new project reinforces the company’s long-term commitment to Nigeria’s energy development.
“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,” Costello said.
Shell explained that the project will increase feedstock supply to NLNG’s Train 7 expansion, which aims to grow the Bonny Island terminal’s capacity by an additional 8 million metric tonnes annually a 35% boost to Nigeria’s current LNG output.
The HI field, discovered in 1985, lies in 100 metres of water and about 50 kilometres offshore. The estimated recoverable resource volume stands at 285 million barrels of oil equivalent. The joint venture structure places Sunlink Energies with a 60% stake and SNEPCo with 40%, with production to be reported under Shell’s Upstream segment.
The development will feature:
- A wellhead platform with four production wells.
- A pipeline transporting multiphase gas to Bonny Island.
- A gas processing plant at Bonny, where processed gas will be sent to NLNG and condensate to the Bonny Oil and Gas Export Terminal.
Tinubu’s Energy Reform Driving Renewed Investment
The Presidency highlighted that the HI project was enabled by Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.
Since 2024, Tinubu has introduced key reforms through the Office of the Special Adviser on Energy, led by Olu Arowolo Verheijen, providing fiscal incentives, regulatory clarity, and simplified operating processes reforms now embedded in legislation.
Verheijen said the new FID demonstrates the impact of these reforms:
“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 strengthen the reliability of Nigeria’s LNG exports while expanding LPG supply for domestic use, boosting forex earnings, and advancing clean cooking access for millions of households.”
The Presidency noted that the HI and Ubeta gas projects together will supply up to 15% of NLNG’s total feedgas requirements, covering Trains 1–7, and play a vital role in job creation, economic growth, and energy diversification.
According to a 9am News report, the HI Gas Project also aligns with Shell’s Capital Market Day 2025 strategy, targeting upstream and integrated gas projects delivering over one million barrels of oil equivalent per day between 2025 and 2030.
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