UK oil major Shell has entered a farm‑in agreement with Chevron to acquire a 35% stake in two oil blocks in Angola’s Lower Congo Basin, boosting its exposure to the country’s promising frontier deepwater plays.
The farm‑in for Blocks 49 and 50—undeveloped acreage located in ultra‑deep waters—follows an exclusive exploration agreement Shell signed with Angola last autumn covering several offshore blocks.
Chevron completed seismic data acquisition for the blocks in 2025 and has since advanced toward data processing. The acreage is considered prospective for hydrocarbons, supported by regional geology and nearby producing fields.
“We will continue to invest in our upstream business in a disciplined way where the right opportunities arise. New exploration, such as in Angola, is important to sustaining production into the 2030s,” Shell said on Tuesday.
The transaction aligns with Shell’s strategy to pursue value‑accretive exploration opportunities with competitive breakevens and to work alongside experienced partners in proven basins, according to industry reports.
The deal, subject to regulatory approvals and customary closing conditions, marks a strategic expansion of Shell’s upstream portfolio in sub‑Saharan Africa.
Under the terms of the agreement, Shell will obtain a non‑operated working interest in the assets, while Chevron’s Angolan subsidiary Cabinda Gulf Oil Company will remain the operator, leveraging its established presence and experience in offshore developments.
Financial terms were not disclosed, but Shell said the deal has government approval and is moving through final legal steps.
A Shell spokesperson said: “This agreement strengthens our long‑standing engagement in Angola and reflects our disciplined approach to exploration. Partnering with Chevron allows us to access high‑quality acreage while sharing technical expertise and managing risk.”
Chevron signed a new risk service contract on the blocks with the Angolan government following an overhaul of the country’s production‑sharing terms in late 2024. The government has slashed royalties, loosened cost‑recovery limits, and reduced the state’s take on oil profits.
Angola left Opec in 2024 and has been battling falling production caused by years of underinvestment, mature reservoirs, and a challenging fiscal regime.
Shell’s return to Angola comes amid a broader wave of consolidation and repositioning in the country, with players such as TotalEnergies, ExxonMobil and Azule Energy all reshuffling or expanding their positions.