Angola Banks on Global Energy Giants to Curb Oil Output Decline

Angola’s oil sector is witnessing a major comeback as Shell returns after a 20-year absence, signaling growing confidence in the country’s reformed energy policies. Shell, alongside Chevron and state-owned Sonangol, signed agreements for Block 33 in the Congo Basin, part of Angola’s push to revive declining oil production. In July, oil production dropped below a benchmark of one million barrels per day for the first time since the country exited OPEC in 2023. Reforms since 2019—ranging from easier licensing to improved tax terms—are beginning to attract global players back into Africa’s third-largest oil producer, resulting in Shell’s return. In a further push to boost production, the government announced it will open a bidding round for five new oil blocks by year-end. Officials hope these deals will revitalize the nation’s oil industry.

Bloomberg