In a landmark development marking the company’s return after two decades away, Shell has signed a historic agreement with Angola’s National Agency for Petroleum, Gas and Biofuels (ANPG) to explore and develop 17 ultra-deepwater oil blocks off the Angolan coast, representing an initial investment of nearly $1 billion.
The agreement follows a memorandum of understanding signed in November 2024 and has now been formalized into contractual terms awaiting approval by the Council of Ministers. Shell will operate Blocks 19, 34, and 35, along with 14 additional blocks in ultra-deepwater concession areas across the Lower Congo and Kwanza Basins, and will also participate as a partner in Block 33.
Paulino Jerónimo, Chairman of ANPG’s Board of Directors, described the move as “Shell’s grand return to Angola,” explaining that a comprehensive evaluation of all 17 blocks will be conducted over the next few years. The return is strategically significant as Angola works to sustain oil production above one million barrels per day.
“Our incremental production projects from marginal fields are designed to maintain output at this level, but new discoveries are vital for future growth,” Jerónimo said. He added that Shell’s selection followed direct negotiations, a process permitted under Angolan law, after the company expressed interest in re-entering the market several years ago.
Minister of Mineral Resources, Petroleum, and Gas, Diamantino Azevedo, expressed confidence that the company’s investments during the prospecting phase would soon lead to development and production. “This marks the beginning of intensified exploration activity. Angola’s deep and ultra-deep waters hold great potential, and this partnership shows that our country remains a strong hub for oil exploration.”
Eugene Okepere, Shell’s Senior Vice President, praised Angola’s high energy potential and expressed gratitude for the government’s collaboration. “We are thrilled to return to Angola, a country with immense opportunity. We look forward to making significant investments and strengthening our long-term partnership,” Okepere said.
Under the agreement, Shell will work within a consortium including Equinor and Sonangol E&P. The ANPG chairman also revealed that several international and domestic operators have shown renewed interest in Angola’s oil sector, with negotiations underway for three new blocks in the Namibe Basin and other open concession areas involving Angolan companies.
Source: angolanminingoilandgas.com