Reactions trail Shell, Sunlink $2bn HI gas project

Mkpoikana Udoma

Port Harcourt — President Bola Ahmed Tinubu and Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, have applauded the $2 billion Final Investment Decision, FID, announced by Shell Nigeria Exploration and Production Company Limited, SNEPCo, and Sunlink Energies and Resources Limited for the development of the HI gas field in OML144, describing it as a landmark validation of Nigeria’s ongoing energy reforms.

The HI gas project, located about 50 kilometres offshore, will deliver 350 million standard cubic feet of gas per day, mmscfd, when completed, equivalent to nearly one-third of the feedgas required for the Nigeria LNG Train 7 expansion.

Tinubu: “Nigeria Is Open for Business”
President Tinubu, in a statement on Friday, welcomed the investment decision, saying it reflects growing international confidence in Nigeria’s oil and gas sector and reaffirms the country’s reputation as a preferred energy investment destination.

“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,” the President stated.

Tinubu commended the partnership between Shell and Sunlink, describing it as an example of how collaboration between local and international energy players can accelerate national growth.

“This milestone underscores what is possible when our policies align with the ambitions of investors and the needs of Nigerians. We remain committed to creating an enabling environment that supports both domestic and foreign investors in the energy sector,” he said.

The President added that his administration’s reform blueprint — including fiscal incentives, simplified processes, and clear regulatory frameworks — was designed to unlock Nigeria’s vast gas resources for industrialization, job creation, and cleaner energy development.

Lokpobiri: “A Direct Outcome of Our Bold Reforms”
Reacting to the announcement in a post on X, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the Shell-Sunlink investment is a tangible result of the administration’s focused policy interventions in the sector.

“I have just been informed by the Country Chair of Shell Nigeria, Mr. Marno de Jong, of a Final Investment Decision of $2 billion for a new offshore project in Nigeria’s HI Field,” Lokpobiri said.

“Located in Oil Mining Lease (OML) 144, approximately 50 kilometers offshore Nigeria, this significant investment marks another milestone in our ongoing efforts to strengthen the nation’s energy sector.”

He emphasized that the project reflects growing investor confidence and validates Nigeria’s position as a reliable investment hub for global energy majors.

“This decision is a direct outcome of the bold reforms and transformative policies we have implemented, which continue to enhance investor confidence and attract substantial capital into our oil and gas industry,” the Minister noted.

“It reaffirms Nigeria’s position as a preferred destination for energy investment and highlights the value of collaboration between government and industry. We anticipate that more FIDs from other investors will follow in the coming months.”

A Testament to Policy Stability
The FID is the third major upstream investment commitment in Nigeria within 18 months, following the Ubeta gas project and the Bonga North deepwater development , bringing total new upstream investments under the Tinubu administration to over $8 billion.

Government officials have credited this momentum to the Presidential Directives on Oil and Gas Sector Reforms, especially Directive 40, which established a more competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore assets.

The Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the HI gas FID as proof that policy consistency delivers investor confidence.

“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 the reliability of Nigeria’s LNG exports while expanding LPG supply for domestic use, reducing imports, and boosting foreign exchange earnings.”

Driving Nigeria’s Gas Future
Discovered in 1985, the HI gas field had remained undeveloped for nearly four decades until reforms under the current administration reignited investor interest.

The project will supply natural gas feedstock to Nigeria LNG Limited, NLNG, at Bonny Island and increase domestic LPG availability, advancing Nigeria’s clean cooking initiative while generating thousands of direct and indirect jobs.

President Tinubu reiterated that his government would continue to provide an enabling policy environment to sustain the momentum.

“This administration will not relent in ensuring that Nigeria remains a leading destination for energy investments,” he said. “We will continue to prioritize investor-friendly policies that translate our gas potential into real economic value for our people.”

Nigeria’s Reform-Driven Upstream Revival
Since 2023, the Tinubu administration has implemented a suite of oil and gas sector reforms focused on reducing contracting cycle times, improving fiscal competitiveness, and ensuring regulatory clarity.

These measures have attracted renewed interest from global investors such as Shell, TotalEnergies, Chevron, and Seplat, all of whom have reaffirmed commitments to Nigeria’s upstream and gas development programmes.

The HI gas project, developed jointly by Sunlink Energies (60%) and SNEPCo (40%), is expected to begin production by 2028. It is projected to deliver 350mmscfd of gas and 60,000 barrels of oil equivalent per day at peak output, a major addition to Nigeria’s gas supply infrastructure.