Angola’s Oil Sector Sees Revival with Shell’s Return
Angola’s oil sector is experiencing a resurgence as Shell makes a comeback after a 20-year hiatus, indicating renewed confidence in the country’s energy policies. Shell, Chevron, and state-owned Sonangol have signed agreements for Block 33 in the Congo Basin, as part of Angola’s efforts to boost declining oil production. In July, oil production fell below one million barrels per day, a concerning milestone since Angola left OPEC in 2023.
Since 2019, Angola has implemented various reforms including streamlined licensing processes and improved tax terms, attracting major global players back to Africa’s third-largest oil producer. The re-entry of Shell into the Angolan market is a significant development that underscores the growing appeal of the country’s energy sector.
The Angolan government has announced plans to open a bidding round for five new oil blocks by the end of the year, in a bid to further stimulate production and investment in the industry. These strategic moves are expected to breathe new life into Angola’s oil sector, which has been grappling with a decline in production in recent years.
Source: Bloomberg
