British oil major, Shell Plc, has returned to Angola after a 20 year break, as the country seeks fresh investment to boost crude oil production and reverse years of decline.
The oil firm signed agreements with the National Agency of Petroleum, Gas and Bio fuels (ANPG) to explore Block 33 in the Congo Basin.
The deal also involved Chevron Corporation and Angola’s state owned Sonangol EP. ANPG board member, Alcides Andrade, disclosed this on Wednesday in Luanda during an oil and gas conference.
Andrade said the agreements show Angola’s determination to attract major international companies to its oil sector.
According to him, Shell’s re-entry marks a turning point after reforms that improved tax terms and simplified licensing since 2019.
“Today we witnessed agreements with several investors to continue developing productive activities and mitigate the decline in oil production,” Andrade said.
In addition to Block 33, contracts were signed for Block 24 in the Kwanza Basin.
Sonangol will act as operator, with local partners Acrep and Red Sky Energy.
These blocks are expected to support future drilling and maintain Angola’s position as Africa’s third largest oil producer.
Angola targets new projects to raise production
Angola has been struggling to keep production above 1 million barrels per day (bpd).
In July, output dropped below this mark for the first time since the country left the Organisation of the Petroleum Exporting Countries (OPEC) two years ago.
Crude oil remains Angola’s most important source of revenue.
Falling production threatens government finances, creating pressure to attract investors back to its offshore and onshore fields.
On his part, Petroleum Minister Diamantino Azevedo said Angola will launch a bidding round for five new blocks before the end of 2025.
He explained that the round is part of a larger programme of 10 blocks, of which five were already awarded through direct negotiations.
“These new blocks represent the government’s effort to open the sector and ensure the country continues to benefit from oil revenues,” Azevedo stated.
Since 2019, Angola has introduced several reforms aimed at halting declining oil output.
These include offering more flexible contract terms and reducing barriers for foreign companies to participate in licensing rounds.
Shell’s return is one of the clearest signs that these efforts are attracting global players back into the Angolan oil industry.
The company’s presence, alongside Chevron and Sonangol, is expected to boost exploration activity and support the government’s revenue drive.
