Shell Plc has returned to Angola after a 20-year absence, underscoring renewed confidence in the country’s oil sector as reforms designed to attract international investment begin to deliver results.

The company, together with Chevron Corp. and state-owned Sonangol EP, signed agreements with the National Agency of Petroleum, Gas and Biofuels for Block 33 in the Congo Basin, ANPG board member Alcides Andrade confirmed.

Andrade said Shell’s comeback reflects the success of reforms introduced since 2019, including simplified licensing, better tax terms, and measures aimed at enticing major global energy companies.

Angola, Africa’s third-largest oil producer, has been working to counter a steep decline in output, which remains central to government revenue.

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In July, production dropped below one million barrels per day for the first time since the country withdrew from OPEC two years ago, Bloomberg reported.

At the same conference, agreements were also signed for Block 24 in the Kwanza Basin, with Sonangol operating alongside partners Acrep and Red Sky Energy.

Separately, Petroleum Minister Diamantino Azevedo announced that Angola will launch a bidding round for five more oil blocks before the end of the year.

These are part of a set of 10 blocks, with the other five already allocated through direct negotiations with undisclosed companies.

Meanwhile, the long-delayed Cabinda refinery, the first to be built in Angola since independence nearly 50 years ago, is scheduled to begin producing fuel before the end of 2025.

The 30,000-barrel-per-day facility will be the country’s second refinery and is expected to help curb reliance on costly fuel imports at a time when the government is phasing out subsidies that have previously triggered violent protests.

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Image Credit: Bloomberg