Shell, Galp and Petrobras to Collaborate on African Exploration Block

SEATTLE (Oil Monster): Together, Shell, Petrobras, and Galp, three of the biggest oil companies, will explore a block off the coast of Sao Tome and Principe, Africa. According to reports, Block-4 is still in the early phases of exploration.

Shell, located in the UK, will operate the block and own a 30% stake. Both Brazilian state-owned oil and gas behemoth Petrobras and Portugal-based Galp possess 27.5% of the company. Agencia Nacional do Petroleo de Sao Tome Principe (ANP-STP) owns the remaining 15%. Galp declared that it and KE STP Company B.V., an affiliate of Shell, had struck a farm-in agreement.

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Petrobras claims that the consortium members' agreement will diversify its holdings and strengthen its exploration activities in Africa. In February of this year, the Brazilian major made a comeback to Sao Tome Principe by purchasing minority shares in Blocks 10, 11, and 13, which are controlled by Shell.

According to reports, the agreement is consistent with Petrobras' long-term strategic plan, which was previously announced and focuses on increasing production while reducing its carbon footprint and replacing reserves. Petrobras will be able to expand its exploration efforts in Africa with its assistance.