Oil & Gas

Shell is weighing a potential agreement with Chevron that would see the European energy major acquire stakes in two undeveloped ultra-deepwater offshore blocks in Angola. The move reflects growing confidence among international oil companies in Angola’s offshore potential and long-term hydrocarbons outlook.

Angola’s push to reform its regulatory framework and create a more investor-friendly energy sector is beginning to yield results, with major European oil companies prepared to commit billions of dollars to the country. As sub-Saharan Africa’s second-largest crude oil producer after Nigeria, Angola is targeting sustained production levels of more than 1 million barrels per day.

Shell confirmed that it has signed a farm-in agreement with Cabinda Gulf Oil Company Ltd, a subsidiary of Chevron, to acquire a 35% interest in offshore Blocks 49 and 50. The agreement has already received government approval and is now subject to the completion of final legal and regulatory requirements, a development also confirmed by Chevron.

Highlighting the strategic importance of frontier exploration, Shell said new projects in countries such as Angola are critical to sustaining production into the 2030s, as it seeks to increase gas output by 1% while maintaining stable oil production.

Investor appetite is further supported by Angola’s upcoming licensing round and new geological insights, including Viridien’s 4,300-square-kilometre multi-client seismic reimaging programme over offshore Block 22, which targets underexplored structures along the Atlantic Hinge zone similar to the prolific Cameia and Golfinho fields.