British energy giant Shell has agreed to acquire stakes in two undeveloped ultra-deepwater offshore blocks in Angola from Chevron, a move that underscores renewed international investment in the African oil producer as it seeks to stabilise output and attract foreign capital.
Shell said on Tuesday it had signed a farm-in agreement with Cabinda Gulf Oil Company Ltd, a subsidiary of US major Chevron, to obtain a 35 percent interest in Blocks 49 and 50, located offshore Angola in ultra-deep waters.
The deal has received approval from the Angolan government and is awaiting completion of final legal requirements, Shell said in a statement.
The transaction highlights growing confidence among major European oil companies in Angola’s upstream sector, following regulatory reforms aimed at reversing years of declining production and encouraging exploration in frontier acreage.
Angola is sub-Saharan Africa’s second-largest crude oil producer after Nigeria, but output has steadily fallen from a peak of around two million barrels per day in 2008 due to maturing fields, limited new discoveries and underinvestment.
The government has introduced a series of reforms in recent years, including more flexible contract terms, tax incentives and streamlined licensing procedures, as it seeks to keep oil production above one million barrels per day and extend the lifespan of its petroleum sector.
Shell and other European oil majors have signalled plans to invest billions of dollars in Angola, particularly in offshore developments, where the country’s remaining reserves are concentrated.
Blocks 49 and 50 are located in the deep and ultra-deep waters offshore Angola’s coast and remain at an early stage of exploration. Such projects typically involve high upfront costs and long development timelines, but can yield substantial production if commercial discoveries are made.
More Read
Chevron, which has operated in Angola for decades, remains a major player in the country’s offshore oil and gas industry through its subsidiary Cabinda Gulf Oil Company. The company has been reassessing its global portfolio in recent years, balancing new investments with asset sales and partnerships.
For Shell, the acquisition fits into a broader strategy of maintaining a strong presence in deepwater oil and gas, particularly in regions where it already has technical expertise and long-standing relationships.
Shell has operated in Angola since the 1990s and holds interests in several offshore blocks and liquefied natural gas (LNG) projects. Angola LNG, one of the country’s flagship gas developments, has been central to efforts to monetise associated gas and reduce flaring.
The Angolan government has repeatedly stressed the importance of continued foreign investment to support economic stability, as oil revenues account for the bulk of export earnings and state income.
President João Lourenço’s administration has sought to reposition Angola as an attractive destination for international energy companies, while also promoting diversification and a gradual energy transition.
Despite reforms, Angola faces stiff competition from other African producers, including Namibia, where recent offshore discoveries have drawn global attention, as well as from emerging oil provinces in the Americas and the Middle East.
Analysts say success in ultra-deepwater exploration could play a critical role in offsetting declines at existing fields, but warn that volatile oil prices, rising costs and pressure to cut carbon emissions remain key risks.
European oil companies, including Shell, have pledged to reduce emissions and increase investment in cleaner energy, even as they continue to develop oil and gas projects to meet global demand.
The Shell-Chevron deal adds to a series of recent transactions highlighting renewed activity in Angola’s offshore sector, as producers position themselves for the next phase of exploration and development in one of Africa’s most established oil economies.
