Shell Approves $2bn Offshore Gas Project as Tinubu’s Reforms Attract Over $8bn in Energy Investments

By Abiola Adigun| Albarka 89.9 FM | October 14 2025

Nigeria has secured another major boost to its energy sector as global oil giant Shell Petroleum Development Company (SPDC) announced a $2 billion Final Investment Decision (FID) for the development of the HI shallow offshore gas field (OML 144), marking the second major gas investment in 18 months under President Bola Ahmed Tinubu’s administration.
The project, expected to deliver 350 million standard cubic feet of gas per day (mmscf/d) from 2028, will provide nearly one-third of the feedstock required for the Nigeria LNG (NLNG) Train 7 expansion. The investment brings total upstream oil and gas commitments in Nigeria to over $8 billion since 2023, signaling renewed global investor confidence in the country’s oil and gas industry.
President Tinubu, in a statement issued on Monday by his Special Adviser on Information and Strategy, Bayo Onanuga, described Shell’s decision as “a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment.”
Since 2024, the Tinubu administration has implemented a series of energy sector reforms through the Office of the Special Adviser on Energy, introducing fiscal incentives, regulatory clarity, and streamlined operational processes to attract foreign direct investment.
These policy measures—now embedded in legislation—are credited with reducing contracting costs, speeding up approval cycles, and restoring the confidence of international oil companies (IOCs).
The Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the new wave of gas investments demonstrates the impact of Tinubu’s policy framework on unlocking Nigeria’s gas potential.
“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,” Verheijen said. “These projects will strengthen Nigeria’s LNG exports while expanding domestic LPG supply—reducing imports, boosting forex earnings, and advancing clean cooking access for millions of households.”
The HI gas field, first discovered in 1985, is being developed under Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas (NAG) fields in onshore and shallow offshore areas.
Shell’s Upstream President, Peter Costello, described the HI gas project as part of the company’s long-term commitment to Nigeria’s energy development.
“Following our recent investment in the Bonga deep-water development, today’s announcement reinforces Shell’s commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas,” Costello said. “This upstream project will expand our Integrated Gas portfolio while supporting Nigeria’s ambition to play a bigger role in the global LNG market.”
The new project follows two other major Final Investment Decisions—the Ubeta Non-Associated Gas Project and the Bonga North Deepwater Development—both of which were initiated under Tinubu’s administration. Together, the Ubeta and HI gas projects will supply up to 15 percent of NLNG’s total feedgas requirements, covering Trains 1 to 7.
Nigeria’s NLNG Train 7 project, which aims to add 8 million metric tonnes per annum (MTPA) to the country’s current LNG production capacity, is expected to expand the nation’s export potential by 35 percent.
The combined impact of these investments is projected to create thousands of direct and indirect jobs, deepen local content participation, and stimulate growth in host communities. Analysts say the developments could also position Nigeria as a reliable gas supplier amid global demand for cleaner energy.
Energy economist Dr. Adetunji Ogunsola explained that the surge in FIDs “underscores how critical regulatory clarity is to investor decision-making.”
He noted that “for the first time in years, Nigeria is witnessing consistent upstream commitments driven by confidence in government policy direction.”
President Tinubu reaffirmed his administration’s resolve to continue fostering an investor-friendly environment, stressing that energy remains a cornerstone of his government’s economic diversification agenda.
“This major FID by Shell—their second in one year—is a strong endorsement of our reforms and proof that the world believes in Nigeria’s investment climate,” the President said.
With more FIDs expected in the coming months, the Tinubu government hopes to solidify Nigeria’s position as a regional gas powerhouse—supplying both domestic industries and the international LNG market.