SHELL MAKES DRAMATIC RETURN TO ANGOLA AFTER 20-YEAR ABSENCE
Major oil giant Shell has officially returned to Angola’s oil sector after two decades, signing landmark deals that signal a dramatic shift in investor confidence toward the West African nation’s energy industry.
Shell, alongside Chevron and Sonangol EP, has inked agreements with the National Agency of Petroleum, Gas and Biofuels for Block 33 in the Congo Basin, marking the company’s first major commitment to Angola since its departure 20 years ago.
The return highlights the success of sweeping reforms introduced since 2019, including streamlined licensing procedures, improved tax terms, and aggressive campaigns to attract major international energy companies. These changes come as Angola, Africa’s third-largest oil producer, desperately seeks investment to combat a steep decline in production that threatens government revenues.
The urgency became apparent in July when Angola’s oil production fell below one million barrels per day for the first time since leaving OPEC two years ago. Additional agreements were also signed for Block 24 in the Kwanza Basin, with Sonangol as operator partnered by Acrep and Red Sky Energy.
Angola’s Petroleum Minister Diamantino Azevedo announced that the country will open bidding rounds for five additional oil blocks before year-end, with five others already awarded through direct negotiations.
Sources: Bloomberg, WorldOil.com
