Shell focuses on African offshore and revives upstream amid challenging environment

The Anglo-Dutch company maintains its oil and gas operations on the African continent, betting on offshore exploration and the reactivation of onshore fields, while the institutional and regulatory context remains uncertain.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

After reducing its investments in onshore activities in Nigeria, Royal Dutch Shell is now focusing its efforts on high-exposure upstream projects in Africa. The current strategy centers on deepwater exploration and the recovery of onshore assets, with particular attention to strategic basins across the continent. This approach contrasts with the gradual withdrawal seen among other major industry players, notably TotalEnergies, Eni, and BP, who have opted to limit their commitments in the African upstream segment.

Restarting Operations in Libya and Diversifying the Portfolio

A memorandum of understanding was recently signed by Royal Dutch Shell for the restart of an onshore oil field in Libya. This move comes in a context where extraction operations in Libya remain vulnerable to recurrent interruptions. Several major fields, including El-Sharara and El-Feel, have experienced shutdowns following social movements and political tensions. The National Oil Corporation (NOC), Libya’s national oil company, reported at the end of August 2024 a 63% decrease in the country’s daily production due to these incidents.

In January 2025, the management of the National Oil Corporation underwent a significant change, with the appointment of Massoud Suleman as interim chairman, succeeding Farhat Bengdara. Governance and transparency issues remain central to the management of Libya’s oil sector, in an institutional environment marked by fragmentation of authorities and ongoing disagreements over revenue management.

Acceleration in South African Offshore and Regulatory Challenges

At the same time, Shell received official authorization to begin ultra-deepwater drilling operations in the Orange Basin, off the coast of South Africa. This project comes as the South African upstream sector faces a complex legal environment, marked by several disputes regarding consultation with local communities during exploration campaigns. A seismic campaign conducted in 2021 in the Wild Coast region was suspended by the Makhanda High Court in 2022, before a decision by the Supreme Court of Appeal in June 2024 partially ruled in favor of the administration, while requiring that public consultation procedures be resumed in accordance with legislation.

This evolving regulatory context exposes operators to additional delays and uncertainty in project planning. Recent decisions highlight the importance of meeting consultation obligations, an increasingly central issue for the continuation of offshore work.

Sector Comparison and Strategic Adjustments

As competitors adjust their commitments on the continent, Shell continues the selective development of its African assets, maintaining a differentiated position in the upstream segment, notably through the exploitation of liquefied natural gas (LNG). The company also adjusted some of its strategic objectives in spring 2024, postponing certain emission reduction targets without changing the pace of upstream investments.

The facts presented illustrate a gradual reshaping of energy strategies on the African continent, with a strong focus on offshore resources and a selective continuation of operations despite institutional and regulatory uncertainties. This dynamic could influence market balances and the structuring of regional energy flows in the medium term, in an environment still subject to operational uncertainties.

A major fire has been extinguished at Chevron’s main refinery on the US West Coast. The cause of the incident remains unknown, and an investigation has been launched to determine its origin.
Eight OPEC+ countries are set to increase oil output from November, as Saudi Arabia and Russia debate the scale of the hike amid rising competition for market share.
The potential removal by Moscow of duties on Chinese gasoline revives export prospects and could tighten regional supply, while Singapore and South Korea remain on the sidelines.
Vladimir Putin responded to the interception of a tanker suspected of belonging to the Russian shadow fleet, calling the French operation “piracy” and denying any direct Russian involvement.
After being intercepted by the French navy, the Boracay oil tanker, linked to Russia's shadow fleet, left Saint-Nazaire with its oil cargo, reigniting tensions over Moscow’s circumvention of European sanctions.
Russian seaborne crude shipments surged in September to their highest level since April 2024, despite G7 sanctions and repeated drone strikes on refinery infrastructure.
Russia’s Energy Ministry stated it is not considering blocking diesel exports from producers, despite increasing pressure on domestic fuel supply.
TotalEnergies has reached a deal to sell mature offshore oil fields in the North Sea to Vår Energi as part of a $3.5bn divestment plan aimed at easing its rising debt.
The Russian government has extended the ban on gasoline and diesel exports, including fuels traded on the exchange, to preserve domestic market stability through the end of next year.
OPEC has formally rejected media reports suggesting that eight OPEC+ countries plan a coordinated oil production increase ahead of their scheduled meeting on October 5.
International Petroleum Corporation has completed its annual common share repurchase programme, reducing its share capital by 6.2% and is planning a renewal in December, pending regulatory approval.
Kansai Electric Power plans to shut down two heavy fuel oil units at Gobo Thermal Power Station, totalling 1.2GW of capacity, as part of a production portfolio reorganisation.
Canada’s Questerre partners with Nimofast to develop PX Energy in Brazil, with an initial commitment of up to $50mn and equal, shared governance.
BP commits $5 billion to Tiber-Guadalupe, with a floating platform targeting 80,000 barrels per day and first production in 2030, to increase its offshore volumes in the Gulf of Mexico.
Russia projects a 12.5% contraction in oil and gas revenues in 2025, before a gradual recovery through 2028, according to official economic projections.
Baker Hughes will supply up to 50 subsea trees and associated equipment to Petrobras to support offshore production in Brazil, strengthening its role in the development of pre-salt fields.
Driven by rising global energy consumption and exploration investments, the oilfield service equipment market is expected to grow at a 5.39% CAGR to reach $36.87bn by 2031.
US sanctions against Serbian oil company NIS, owned by Gazprom, were delayed by eight days after talks between Belgrade and Washington, President Aleksandar Vucic said.
Nigeria’s oil union ordered the suspension of gas and crude deliveries to Dangote refinery following the dismissal of hundreds of local workers, escalating an industrial dispute with potential supply impacts.
Vitol strengthens its presence in West Africa by acquiring a 30% stake in the Baleine oil field from Eni, while maintaining an active role in the country’s offshore development.

Log in to read this article

You'll also have access to a selection of our best content.

[wc_register_modal]