Shell returns to Angola amid new oil block bidding to boost production

Shell Plc’s return to Angola after a 20-year absence signals growing confidence in the country’s oil sector, as recent reforms aimed at attracting international investment begin to take effect.

Shell, alongside Chevron Corp. and state-owned Sonangol EP, signed agreements with the National Agency of Petroleum, Gas and Biofuels (ANPG) for Block 33 in the Congo Basin, ANPG board member Alcides Andrade said.

According to Andrade, Shell’s comeback reflects the success of reforms introduced since 2019, including streamlined licensing, improved tax terms, and measures to lure major global energy firms.

Angola, Africa’s third-largest oil producer, has been courting investment to counter a sharp decline in output, a key source of government revenue. In July, production fell below one million barrels per day for the first time since Angola left OPEC two years ago, Bloomberg reported.

At the same conference, deals were also signed for Block 24 in the Kwanza Basin, with Sonangol as operator and Acrep and Red Sky Energy as partners.

Separately, Petroleum Minister Diamantino Azevedo said Angola will launch a bidding round for five additional oil blocks before the end of the year.

These are part of an initial set of 10 blocks, with the remaining five already awarded through direct negotiations with undisclosed companies.

At the same time, Angola’s long-awaited Cabinda oil refinery, the first to be built since independence nearly 50 years ago, is set to begin fuel production before the end of 2025.

The 30,000-barrel-per-day facility will become the country’s second refinery and is expected to reduce dependence on expensive fuel imports, just as the government moves to phase out subsidies that have previously sparked violent protests.