Chevron Inks Offshore Deal to Develop Angola's Block 33/24

Chevron Corporation CVX, one of the world’s leading integrated oil and gas companies, recently entered a preliminary agreement with Angola’s national oil and gas concessionaire (“ANPG”) to explore and develop offshore oil prospects in Block 33/24, according to Reuters. This strategic move represents a significant step in Chevron’s commitment to enhancing its upstream portfolio in West Africa, particularly within the promising Lower Congo Basin.

Strategic Importance of Angola’s Block 33/24

Block 33/24 is an offshore area in the Lower Congo Basin, neighboring two of Angola’s top oil-producing zones, Block 17 and Block 32. These neighboring blocks have been among the highest-producing assets in the country, delivering hundreds of thousands of barrels per day. The proximity of Block 33/24 to such productive regions underscores the immense geological potential Chevron aims to tap into.

Chevron’s selection of Block 33/24 is no coincidence. The block’s positioning between proven high-yield fields makes it a prime candidate for successful hydrocarbon discoveries. Furthermore, the Lower Congo Basin is renowned for its complex but highly lucrative reservoirs, which continue to attract major international oil companies.

Terms of the Risk Services Contract

The agreement, signed during the opening day of an energy conference in Angola, outlines a Risk Services Contract (“RSC”) between Chevron and ANPG. This contract structure allows Chevron to carry the upfront exploration and development costs while potentially reaping the rewards if commercial discoveries are made.

Houston, TX-based energy company has noted that the execution of the RSC remains subject to regulatory approvals, but all indications point to strong support from Angolan authorities, who have been actively encouraging foreign investment to rejuvenate the country’s oil sector.

Chevron’s Strategic Commitment to Angola

For decades, Chevron has been active in Angola, conducting operations through its local partner, Cabinda Gulf Oil Company Limited. Its legacy in the region includes the development of both onshore and offshore fields and substantial contributions to Angola’s economy and energy infrastructure.

With this latest agreement, Chevron reaffirms its strategic commitment to Angola as a core upstream growth area. The company views Angola as a key partner in its global strategy to invest in high-return assets while leveraging advanced technology and operational efficiency.

Energy Conference Highlights and Industry Momentum

The signing of the agreement took place during a key energy conference held in Angola, which aimed to showcase the nation’s petroleum sector to global investors. Angola is steadily emerging as a favorable destination for global oil companies, thanks to its clear regulatory policies, attractive financial incentives and simplified procedures for obtaining licenses.

During the conference, a major development was the announcement of Chevron’s early-stage deal with ANPG, signaling a fresh push in Angola’s offshore exploration activities. This comes at a time when global energy markets are realigning, with many oil majors seeking new exploration opportunities to replace depleting reserves and meet projected demand.

Geopolitical and Economic Implications

This move is not just a business transaction, it carries geopolitical and economic significance. Angola, being one of sub-Saharan Africa’s largest oil producers, is eager to stabilize and increase its output following years of production decline. A successful development of Block 33/24 could add substantial new barrels to the country’s national production.

From Chevron’s perspective, the deal fits into a broader pattern of targeted investments in high-potential deepwater projects. With political stability improving in Angola and regulatory reforms gaining traction, the country presents a compelling case for sustained energy sector investments.

Technological Edge in Deepwater Exploration

Chevron is poised to bring its cutting-edge deepwater exploration technologies to Block 33/24. With decades of experience navigating complex geological environments, the company is well-equipped to assess and exploit the region's hydrocarbon potential.

Advanced seismic imaging, subsea drilling systems and real-time reservoir modeling are just a few of the technologies Chevron is expected to deploy. These capabilities significantly reduce geological risk and enhance recovery rates, making even the most challenging offshore plays viable.

Environmental and Social Commitments

Chevron’s expansion in Angola also includes a strong focus on environmental sustainability and community engagement. The company maintains strict adherence to international environmental standards, particularly when operating in sensitive offshore ecosystems.

In addition, Chevron has a long-standing record of supporting local development initiatives in Angola — ranging from health and education to infrastructure and workforce training. These efforts not only contribute to local socio-economic progress but also reinforce the company’s license to operate in the region.

Outlook and Future Exploration Plans

If regulatory approvals move forward as anticipated, Chevron is expected to start seismic surveys and exploratory drilling within the next year. The initial exploration phase will be critical in determining the commercial viability of the block, with early geological models already indicating strong reservoir characteristics.

Looking ahead, Chevron is likely to explore neighboring blocks in the future and could broaden its operations in Angola, depending on the success of exploration efforts and shifts in geopolitical conditions. Angola’s commitment to maintaining an investor-friendly climate is key to attracting sustained foreign investment in its upstream oil sector.

Conclusion

The preliminary agreement between Chevron and ANPG marks a major milestone in Angola’s ongoing efforts to revitalize its oil industry. For Chevron, the opportunity to explore Block 33/24 represents not just an investment in oil production but a strategic step toward long-term energy security and growth in sub-Saharan Africa. As regulatory approvals are finalized and exploration begins, all eyes will be on Chevron and Angola to see how this partnership unfolds. The outcome of this venture could redefine Angola’s offshore oil landscape and cement Chevron’s role as a central player in the region’s energy future.

CVX's Zacks Rank & Key Picks

Currently, CVX has a Zacks Rank #3 (Hold).

Investors interested in the energysector might look at some better-ranked stocks like Repsol REPYY, Par Pacific Holdings, Inc. PARR and Vitesse Energy, Inc. VTS, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Repsol is a global energy company known for its integrated operations spanning exploration, production, refining and marketing of oil and gas. It actively pursues innovation and sustainability initiatives to transition toward cleaner energy solutions while maintaining a strong presence in key international markets. Repsol is valued at $19.25 billion.  

Par Pacific Holdings is an energy and infrastructure company with operations in the Pacific Northwest, the Rockies and Hawaii. The company's business is organized into three segments: refining, logistics and retail. Par Pacific is valued at $1.78 billion.

Vitesse Energy specializes in providing fluid transfer and control products for the energy sector, offering innovative solutions to optimize performance and reliability. The company serves a diverse customer base in oil and gas, industrial and renewable energy markets. Vitesse Energy is valued at $1.01 billion.  

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