Shell has announced that it has agreed to acquire stakes in two undeveloped ultra-deepwater offshore blocks in Angola from Chevron.
European oil companies plan to invest heavily in Angola, the second-largest oil producer in sub-Saharan Africa after Nigeria. The government has introduced regulatory changes to draw more investment into the energy sector as it works to keep output above one million barrels per day.
Shell said it signed a farm-in agreement with Cabinda Gulf Oil Company, a Chevron subsidiary, to acquire a 35 percent interest in offshore Blocks 49 and 50. The company added that the deal has government approval and is now awaiting completion of final legal steps.
Chevron confirmed the agreement through a spokesperson, noting that the transaction still depends on regulatory clearance.
Shell said new exploration activity, including projects in Angola, is necessary to maintain production into the 2030s. The company aims to increase gas output by one percent through 2030 while keeping oil production stable.
source: www.reuters.com
African Energy Council