Shell, in partnership with Equinor and Sonangol, has signed a preliminary Agreement in Principle with Angola's upstream regulator, ANPG, to pursue Risk Service Contracts for deepwater blocks 19, 34, and 35 in the Kwanza basin. This agreement marks Shell's re-entry into Angolan exploration after a 20-year absence and is a key part of the company's strategy to discover new resources to sustain its oil and gas production into the 2030s.

Ultra Deepwater West Opportunity

A significant aspect of the agreement is the option for the companies to gain control of the massive Ultra Deepwater West (UDWW) area, an undrilled zone spanning the Lower Congo and Kwanza basins. This area covers approximately 51,000 square kilometres and is located west of existing exploration blocks. Water depths in this zone are extreme, ranging from about 2,500 metres to over 4,000 metres. The UDWW area is thought to be prospective for large hydrocarbon structures similar to TotalEnergies' major Venus discovery offshore Namibia, specifically targeting basin floor fans or large sand bodies in ultradeep water beyond the salt diapirs of the Congo basin.

Exploration Strategy and Context

Shell's exploration focus in Angola is influenced by its activities in the wider region, including the ongoing Falcao-1 probe in neighbouring Sao Tome & Principe and the earlier Jaca-1 wildcat, which confirmed a working petroleum system. The company has also signed memoranda of understanding to study exploration potential in Block 33 in the Congo basin with Chevron, and in several other blocks including some in the Namibe basin. There is a strong expectation from Angolan authorities that Shell will commit to licensing parts of the UDWW area after a period of data interpretation.

Official Statements and Next Steps

Angolan officials highlighted that the project will contribute to job creation, skills development, technology transfer, and economic diversification. The agreement is seen as a sign of renewed confidence in Angola's institutional environment. Technical and operational studies on blocks 19, 34, and 35 are scheduled to advance in the coming months to assess oil potential and plan the future exploration phase. A Shell spokesperson emphasized that the current agreement is preliminary and outlines the company's intent before formal contracts are signed.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Iain Esau. All rights to the original text and images remain with their respective rights holders.