Angola’s energy sector is entering a new phase of revival as the government prepares to sign an exclusive negotiation agreement with Shell to explore and develop new offshore oil blocks. The accord, covering Blocks 19, 34, 35 and other ultra-deep-water prospects, signals renewed momentum in Angola’s upstream ambitions — and a stronger partnership between Luanda and one of the world’s largest energy companies.
Driving investment in a liberalised market
The National Oil, Gas and Biofuels Agency (ANPG) confirmed that Shell’s engagement will focus on advancing exploration and optimising production capacity across unexploited basins. This marks one of the most significant investment moves since Angola restructured its petroleum governance framework in 2019, separating Sonangol’s regulatory and operational functions to improve transparency and investor appeal.
By opening new blocks under modern production-sharing terms, Angola aims to maintain output above 1 million barrels per day, even as mature fields decline. Shell’s technical depth and capital commitment are expected to accelerate drilling activity and reduce the country’s dependence on older, costlier assets.
Reinforcing energy security and fiscal stability
For Luanda, the partnership also represents a stabilising force for public finances. Oil revenue continues to account for nearly half of government income, but the push toward deeper-water exploration and enhanced recovery aligns with Angola’s longer-term fiscal consolidation strategy. The government has used the past two years to cut subsidies, reinvest in power infrastructure, and attract private operators into renewables — moves designed to diversify the country’s energy mix without eroding fiscal balance.
Balancing hydrocarbons with a green transition
While oil remains central to Angola’s export base, officials are quick to frame the Shell deal as part of a broader transition strategy. The same regulatory clarity that lures upstream investors is being applied to renewable-energy concessions, including solar and hydro projects under the Angola Energia 2025 programme.
The renewed partnership with Shell therefore symbolises a dual transformation: sustaining short-term revenues while creating conditions for long-term energy resilience. As Angola prepares to host new rounds of licensing, its ability to balance investor confidence, fiscal prudence, and environmental responsibility may define its role in Africa’s evolving energy map.
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