Angola bets on ultra-deepwater to sustain oil output

Angola is once again putting its offshore potential at the center of its long-term energy strategy. 

A recent agreement involving two ultra-deepwater exploration blocks highlights how the country is positioning itself to stabilize production beyond the current decade, at a time when mature fields are declining and competition for capital is intensifying across global oil provinces.

The transaction and its strategic meaning

The transaction involves Shell acquiring interests in Blocks 49 and 50, located offshore Angola in ultra-deep waters, from a subsidiary of Chevron, according to Reuters.

These blocks remain undeveloped, but they sit within a geological trend that has already proven capable of delivering large offshore discoveries in West Africa. 

Government approval has been granted, with final regulatory steps still pending.

Angola’s regulatory shift to attract capital

This move fits into a broader pattern. Over the past few years, Angola has rolled out regulatory and fiscal reforms aimed at reversing production decline and attracting fresh exploration capital. 

The objective is clear: keep national crude output above one million barrels per day, despite the natural depletion of long-producing offshore assets.

The nature of Angola’s crude oil

Angola’s oil is primarily medium to light sweet crude, with grades such as Girassol, Dalia, Pazflor, and Plutónio historically favored by refiners due to their relatively low sulfur content and strong yields of middle distillates. 

Production is overwhelmingly offshore, much of it in deepwater and ultra-deepwater environments that demand advanced technology, complex subsea systems, and long development timelines.

Why ultra-deepwater blocks matter

Blocks 49 and 50 fall squarely into this category. 

Ultra-deepwater projects typically require higher upfront investment, but they also offer the scale needed to sustain national production over decades if discoveries are successful. 

For Angola, these developments are not only about barrels; they are about preserving export revenues, maintaining offshore infrastructure, and reinforcing the country’s role as a reliable Atlantic Basin supplier.

A signal from major operators

From a strategic perspective, the deal reflects how major operators are reallocating capital. 

New exploration in underdeveloped offshore areas is increasingly seen as essential to offset declines elsewhere and secure production through the 2030s. 

While financial terms were not disclosed, the agreement signals continued confidence in Angola’s offshore potential at a time when global investment discipline remains tight.

Why this matters going forward

Angola’s deepwater story is far from over. 

As regulatory clarity improves and exploration activity resumes, ultra-deepwater blocks like these could prove decisive in shaping the country’s next chapter as one of Africa’s leading oil producers, and in defining how offshore investment flows across the Atlantic basin in the years ahead.

Angola bets on ultra-deepwater to sustain oil output