The agreement marks Shell’s return to Angola after two decades, continuing from the memorandum of understanding signed in November 2024, now detailing the terms to be included in the contract pending approval from the Council of Ministers.
Following the agreement signing in Luanda, the chairman of the National Agency of Petroleum, Gas, and Biofuels (Anpg) emphasized Shell’s “grand return,” noting that Shell will now operate a total of 17 blocks in the concession areas, including Blocks 19, 34, and 35, among others.
“Additionally, as stated by Shell’s senior vice president, the company will partner in Block 33,” commented Paulino Jerónimo, highlighting expectations for a detailed evaluation of the 17 concessions in the coming years.
Jerónimo Paulino noted the importance of Shell’s return, as Angola has endeavored to maintain production above one million barrels per day, thus the incremental production project from marginal fields aims to “simply maintain production at a million.”
“New discoveries are essential to sustain this level and possibly achieve growth, which is why we continue to allocate concessions for exploration activities, as demonstrated by these 17 blocks awarded to Shell,” he stated.
Paulino emphasized that Shell’s selection for the 17 blocks resulted from direct negotiation, as the oil company had expressed interest in reentering Angola for at least two years.
“We have opted for what seems most favorable at this time, which is direct negotiation — a process fully compliant with the law,” he remarked.
The Anpg chairman mentioned that other companies already in the Angolan market have shown interest in new investments, indicating negotiations for three new blocks in the Namibe Basin are underway, with a consortium already present in Angola, as well as open area concessions with existing companies in Angola.
Meanwhile, Minister of Mineral Resources, Petroleum, and Gas, Diamantino Azevedo, underscored that Shell’s return is formalized with the signed agreement. He expressed hope that “the efforts and investments made during the exploration phase will yield results, leading to the development and production phase.”
“This marks the start of more exploration activity in the country, involving several blocks in deep and ultra-deep waters. We anticipate some of these will lead to productive activities, reinforcing the country’s position as a significant hub for oil activities, showcasing potential for oil exploration, and combating oil production decline,” he commented.
The minister explained that the decline in oil production is natural, and the path forward is to seek out more oil, maintaining the government’s target of daily production above one million barrels for years to come.
Shell’s senior vice president, Eugene Okepere, briefly remarked on the company’s return to Angola after 20 years, highlighting the nation’s considerable potential and indicating significant investment prospects in the Portuguese-speaking country, with gratitude expressed towards the Angolan government and the national oil concessionaire.
The company will operate Blocks 19, 34, and 35, located in ultra-deep waters in the Kuanza Basin, along with 14 more blocks in ultra-deep waters in the Lower Congo and Kuanza Basins, in a consortium including Equinor and Sonangol E&P.
