Shell Signs $1 Billion Agreement with Angola to Develop 17 Ultra-Deepwater Oil Blocks
The National Agency for Petroleum, Gas and Biofuels (ANPG) and Shell have signed a landmark agreement defining the terms for exploration and development of 17 ultra-deepwater oil blocks off the Angolan coast.
The deal represents an initial investment of nearly $1 billion and marks Shell’s return to Angola after a 20-year absence.
The agreement follows the memorandum of understanding signed in November 2024, now formalized into contractual terms that will be submitted for approval by the Council of Ministers.
Speaking at the signing ceremony in Luanda, Paulino Jerónimo, Chairman of ANPG’s Board of Directors, described the move as “Shell’s grand return to Angola.” He explained that the company will operate Blocks 19, 34, and 35, along with 14 additional blocks in ultra-deepwater concession areas.
“Shell will also participate as a partner in Block 33,” Jerónimo said, noting that a comprehensive evaluation of all 17 blocks will be conducted over the next few years.
Jerónimo emphasized that Shell’s return is strategically significant as Angola works to sustain oil production above one million barrels per day. “Our incremental production projects from marginal fields are designed to maintain output at this level, but new discoveries are vital for future growth,” he said.
He added that Shell’s selection followed direct negotiations, a process permitted under Angolan law, after the company expressed interest in re-entering the market several years ago.
“We pursued the option most beneficial to Angola at this stage — a direct negotiation process,” Jerónimo explained.
The ANPG chairman also revealed that several international and domestic operators have shown renewed interest in Angola’s oil sector.
Negotiations are underway for three new blocks in the Namibe Basin with an existing consortium, as well as other open concession areas involving Angolan companies.
Minister of Mineral Resources, Petroleum, and Gas, Diamantino Azevedo, said the signing marks the completion of efforts to bring Shell back to Angola’s exploration landscape.
He expressed confidence that the company’s investments during the prospecting phase would soon lead to development and production.
“This marks the beginning of intensified exploration activity,” Azevedo said. “Angola’s deep and ultra-deep waters hold great potential, and this partnership shows that our country remains a strong hub for oil exploration. Combating the decline in production is vital for us.”
The minister reaffirmed the government’s commitment to maintaining daily oil output above one million barrels for the foreseeable future.
Eugene Okepere, Shell’s Senior Vice President, welcomed the company’s return after two decades, praising Angola’s high energy potential and expressing gratitude for the government’s collaboration.
“We are thrilled to return to Angola, a country with immense opportunity. We look forward to making significant investments and strengthening our long-term partnership,” Okepere said.
Under the agreement, Shell will operate Blocks 19, 34, and 35 in ultra-deep waters of the Kwanza Basin, along with 14 additional ultra-deepwater blocks across the Lower Congo and Kwanza Basins. The company will work within a consortium including Equinor and Sonangol E&P.
