The National Agency for Oil, Gas, and Biofuels (ANPG) of Angola has announced the signing of an exclusive negotiation agreement with Anglo-Dutch oil company Shell for the exploration of several offshore oil blocks. Signed on November 3, this agreement covers blocks 19, 34, and 35, located off the Atlantic coast of the country.
Stabilizing National Oil Production
This initiative is part of a broader strategy aimed at countering the decline in national oil production. Angola, the second-largest oil producer in Sub-Saharan Africa, has seen its production fall to approximately 1.03 million barrels per day, compared to over 1.4 million a decade ago. By partnering with international players already active in its territory, Luanda hopes to maintain production capacity close to the symbolic one million barrels per day threshold.
The agreement with Shell is not yet a formal exploration and production contract, but it establishes a framework for exclusive negotiations. ANPG has described this step as a “significant moment” in attracting foreign capital and advanced technology for the exploitation of deep-water deposits.
Increasing Initiatives with Major Oil Companies
The partnership with Shell echoes other recent initiatives by the Angolan government. In September, Chevron Corporation entered into a memorandum of understanding to explore a new offshore block, adding to its activities on Block 0 and the Mafumeira Sud field. At the same time, ExxonMobil Corporation secured a license extension for Block 15, continuing operations on this mature asset.
These actions confirm the Angolan authorities’ intention to revitalize the offshore sector by strengthening the presence of major international companies. This model of cooperation primarily relies on production-sharing contracts, which allow the state to directly benefit from extracted volumes while minimizing initial financial risks.
Focusing on Deepwater Offshore
The blocks covered by the agreement with Shell are located in complex areas requiring specific expertise in deep-water drilling. Shell, which already has significant offshore exploration experience, is seen as a technical partner capable of providing solutions tailored to these environments.
The oil sector remains central to Angola’s economy, accounting for over 90% of the country’s exports. The influx of new investments is crucial not only for stabilizing production but also for maintaining public revenues. The exploration of new offshore blocks has become a national priority in an increasingly competitive African market.
