Shell purchases stakes in offshore blocks in Angola from Chevron

Shell announced on Tuesday that it has reached an agreement with Chevron to purchase a stake in two offshore blocks in ultra-deep water offshore Angola.

European oil companies have announced that they will invest billions of dollars in Angola. Angola is the second-largest crude producer in Sub-Saharan Africa after Nigeria. Angola has implemented major regulatory reforms in order to 'attract investments into its energy sector. It aims to keep production at or above 1,000,000 barrels per day.

"We have signed a farm-in contract with Cabinda Gulf Oil Company Ltd, a subsidiary of Chevron to acquire a 35% stake in Block 49 and 50 off the coast of Angola. Shell stated in an email that the deal had been approved by government and was awaiting final legal requirements.

Chevron's spokesperson confirmed that the agreement was reached, but added that the transaction still requires regulatory approval.

Shell said that new?exploration in Angola is crucial to maintaining production well into the 2030s. Shell aims to increase its gas production by 1% and maintain its oil production.

Shell has not disclosed financial details about the deal. (Reporting and additional reporting by Pooja Meon, editing by Barbara Lewis.)

(source: Reuters)