Shell Secures 35% Stake in Angola’s Deepwater Blocks Through Chevron Deal
Shell Plc has signed a major farm-in agreement to acquire a 35% stake in two undeveloped ultra-deep water oil blocks offshore Angola from Chevron Corp.’s subsidiary, Cabinda Gulf Oil Co. Ltd. The London-based energy giant announced Tuesday that the deal has received governmental approval and is pending final legal requirements, though financial terms were not disclosed.
The acquisition of interests in Block 49 and Block 50 marks a significant expansion of Shell’s presence in Angola, Sub-Saharan Africa’s second-largest crude oil producer after Nigeria. European oil majors have committed to spending billions in Angola as the country undertakes major regulatory reforms to attract investment into its energy sector, where it aims to keep production above one million barrels per day.
Shell emphasized that new exploration activities, such as this Angola venture, are important to sustaining production into the 2030s. The company is pursuing a strategy to grow its gas production by one percent through 2030 while maintaining steady oil output. The deal reflects Shell’s disciplined approach to upstream investment, focusing on opportunities that align with its long-term production goals.
Angola has been actively working to revitalize its oil and gas sector through regulatory reforms designed to attract international investment. The country’s efforts to maintain production levels above the one million barrel per day threshold have made it an attractive destination for major energy companies looking to secure new exploration and production opportunities in Africa.
Sources: worldoil.com, bairdmaritime.com
