Shell Plc has re-entered Angola’s oil sector after a 20-year absence, marking a significant endorsement of reforms designed to attract foreign investment into the southern African nation’s energy industry.
The move comes as Angola struggles to reverse falling crude production, a key source of government revenue.
According to the National Agency of Petroleum, Gas and Biofuels (ANPG), Shell signed agreements alongside Chevron Corp. and Angola’s state-owned Sonangol EP for Block 33 in the Congo Basin.
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“Shell’s return reflects the success of reforms introduced since 2019, including streamlined licensing and improved tax incentives for investors,” said ANPG board member Alcides Andrade .
Angola, Africa’s third-largest oil producer, has faced declining output in recent years.
In July 2025, production dropped below one million barrels per day, the lowest level since the country exited OPEC two years ago, Bloomberg reported.
To counter this, the government has been offering new acreage and reviving stalled projects.
At the same conference where Shell inked its deal, contracts were also signed for Block 24 in the Kwanza Basin, with Sonangol as operator alongside partners Acrep and Red Sky Energy.
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Energy Minister Diamantino Azevedo announced that Angola will auction five more oil blocks before the year’s end, while another five have already been awarded through direct negotiations with undisclosed companies.
Beyond upstream developments, Angola is also advancing long-delayed refining projects.
The Cabinda refinery, the first new facility since independence nearly 50 years ago, is expected to begin operations before the end of 2025.
With a planned capacity of 30,000 barrels per day, the plant will become the country’s second refinery and is seen as critical to reducing costly fuel imports.
The government hopes the refinery will help ease pressure as it phases out longstanding fuel subsidies that have previously sparked widespread protests.
Shell’s return, combined with new licensing rounds and refinery expansion, underscores Angola’s bid to reassert itself as a competitive oil hub at a time when global majors are balancing African opportunities with energy transition pressures.
IMage Credit: World Oil
