Shell has agreed to buy stakes in two undeveloped offshore blocks in ultra-deep waters offshore Angola from Chevron, the European energy major said on Tuesday.
European oil majors have said they will spend billions in Angola, Sub-Saharan Africa's second-largest crude oil producer after Nigeria. The country has undertaken major regulatory reforms to attract investment into its energy sector, where it aims to keep production above 1 million barrels per day.
“We have signed a farm-in agreement with Cabinda Gulf Oil Company Ltd - a subsidiary of Chevron - to obtain a 35% interest in Block 49 and 50 offshore Angola. The deal has received governmental approval and is pending final legal requirements," Shell said in an emailed statement.
A Chevron spokesperson confirmed the agreement, adding the transaction is subject to regulatory approval.
"New exploration, such as in Angola, is important to sustaining production into the 2030s," said Shell, which wants to grow its gas production 1% through 2030 and to keep its oil output steady.
Shell did not disclose financial details of the deal.
(Reuters - Reporting by Shadia Nasralla, additional reporting by Pooja Menon; editing by Barbara Lewis)