Faith Nyasuguta
After two decades away, Shell Plc has made a striking return to Angola, a move seen as a major vote of confidence in the country’s energy sector. The announcement came at the Angola Oil & Gas Conference 2025 in Luanda, where Shell joined Chevron and state-owned Sonangol in signing exploration agreements with Angola’s National Agency for Petroleum, Gas and Biofuels (ANPG). The deal grants access to Block 33 in the ultra-deep waters of the Congo Basin, a region with significant untapped potential.
Officials in Luanda say Shell’s comeback is proof that reforms introduced since 2019 are paying off. These included simplifying licensing procedures, offering better tax terms, and restructuring Sonangol to create a more competitive and transparent investment environment. ANPG board member Alcides Andrade called the new partnership a clear sign that Angola is once again attracting the biggest names in global energy.
The timing is critical. Angola, Africa’s third-largest oil producer, has been grappling with a sharp decline in production. In July, daily output fell below one million barrels for the first time in decades, dropping to around 998,000 barrels a day. This marked the lowest level since the country’s dramatic exit from OPEC in 2023. For a government that relies heavily on oil exports to fund its budget, the production slump has been a pressing concern.
To counter the decline, Petroleum Minister Diamantino Azevedo announced that Angola will launch a new bidding round for five oil blocks before the end of the year. These licenses are part of a broader ten-block strategy designed to sustain output, with the first five already allocated through direct negotiations. At the same time, President Joao Lourenco has urged more investment in onshore exploration, promising stability in contracts and a predictable legal environment for investors.
Beyond crude oil, Angola is also turning toward natural gas to diversify its energy exports. A recent discovery in the Kwanza Basin revealed over one trillion cubic feet of gas alongside 100 million barrels of condensate. Authorities believe this could boost gas production by as much as 20 percent in the next five years, offering a new stream of revenue for the state.
Meanwhile, the country’s long-delayed Cabinda refinery is on track to begin operations before the end of 2025. Once completed, it will reduce Angola’s reliance on costly fuel imports and ease pressure on the government as it phases out fuel subsidies that have previously sparked unrest.
For Angola, Shell’s return is more than just a corporate comeback. It signals a potential revival for a struggling industry and offers a glimpse of renewed energy wealth on the horizon.
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