Royal Dutch Shell has agreed to purchase Chevron’s 27.5% interest in Block 32 and 20% interest in Block 29, two ultra-deepwater concessions located approximately 200 kilometers northwest of Luanda. The transaction, valued at an estimated $1.1 billion, expands Shell’s presence in the Lower Congo Basin, increasing its operated acreage by 15% and bringing its total working interest across Angola’s offshore portfolio to 42%. Both blocks lie in water depths exceeding 2,000 meters and are covered by 3D seismic surveys completed in late 2023. Shell plans a four-well drilling campaign in Block 32 beginning in Q4 2026, targeting an upside of 250 million barrels of recoverable light oil equivalent. The transaction is subject to approval by Angola’s National Agency for Petroleum, Gas and Biofuels and is expected to close in H2 2025.

With recent U.S. policy adjustments removing restrictions on joint-venture financing, Shell is advancing negotiations to develop the Mariscal Sucre offshore gas fields in eastern Venezuela, which hold an estimated 5 trillion cubic feet of recoverable natural gas. The company estimates annual gas revenues could reach $1.4 billion by 2028, based on current LNG spot prices averaging $9 per million British thermal units. Shell’s strategy includes partnering with state oil company PDVSA to rehabilitate two existing offshore platforms and construct a 400-kilometer subsea pipeline to the Falcon LNG terminal in Trinidad. Political and regulatory risks remain elevated: Venezuela’s current fiscal terms impose a 30% royalty and 50% profit-sharing requirement, and potential OPEC production quotas may limit export volumes to 200 million cubic feet per day. Shell’s final investment decision is expected in mid-2025.