2023-12-24 15:15:29
After announcing its withdrawal from the Organization of Petroleum Exporting Countries (OPEC), it is not yet clear whether Angola’s oil production will witness an increase during the next stage, or whether the African country will seek to maintain current production levels.
On December 21, 2023, Angola announced in a statement, seen by the Specialized Energy Platform, withdrawal from OPEC after disagreements over oil production quotas for a number of African countries, as Minister of Oil and Gas Diamantino de Azevedo announced the decision. In a Cabinet session chaired by the country’s President João Lourenço.
The decision came at a time when Angola’s oil production was less than its quota for the year 2024. Despite this, the Angolan Minister of Oil and Gas justified the decision by saying that it resulted from a lack of feeling of making an impact within the organization, and that the withdrawal came to preserve the interests of the state.
With the withdrawal of the Central African country from the most important organization in the world for the oil sector, questions are rising about the possibility of increasing Angola’s oil production during the next stage, or whether it will maintain the recent levels, which were originally falling below the quota set within OPEC.
Angola’s oil production in 2023
During the current year 2023, which is about to end, Angola’s oil production has been fluctuating between ups and downs, as last November witnessed a decline in OPEC’s oil production led by 3 countries, including Angola, Iraq and Nigeria.
Angolan production in November amounted to about 1.130 million barrels per day, a decline of 38 thousand barrels per day from October 2023 production, which amounted to 1.168 million barrels per day, according to figures monitored by the specialized energy platform.
Last September, Angola’s oil production recorded about 1.119 million barrels per day, down by about 4,000 barrels per day from August’s production, which amounted to 1.123 million barrels per day, according to the report of the monitoring companies, which monitor OPEC’s oil production during the same month. .
The following graph, prepared by the specialized energy platform, shows the volume of Angola’s oil production during the current year 2023:
Oil production in Angola, last July 2023, amounted to about 1.170 million barrels per day, as the Central African country’s production rose during this month from the previous June’s production, which amounted to about 1.102 million barrels per day.
The country’s oil production in May 2023 recorded about 1.045 million barrels per day, down from 1.091 million barrels per day recorded last April, while Angola’s oil production last March recorded about 1.007 million barrels per day.
The production of February 2023 witnessed a decline in oil production in 4 OPEC member countries, led by Angola and Iraq, as Angola’s oil production recorded about 1.084 million barrels per day, declining from January’s production, which recorded about 1.055 million barrels per day.
Angola withdraws from OPEC
Although Angola’s oil production levels during the current year 2023 were acceptable, although they often declined, the Minister of Oil and Gas, Diamantino de Azevedo, believed that his country feels – at this moment – that it will not gain anything from remaining in OPEC, and that the decision to withdraw is justified. about its interests.
The minister pointed out that his country always fulfills its obligations, and has fought to renew OPEC and help its members obtain benefits, but he added, “When we are in an organization, and our ideas and contributions do not make any impact… withdrawal is the best thing that can be done,” according to the statements that I saw. Energy Platform, quoted from Angolan News Agency Official.
Part of the Angolan Cabinet meeting to take the decision to withdraw from OPEC – Photo from the official Angolan News Agency
Nader Etim, an oil market analyst in the Middle East at the Argus Media platform, commented on Angola’s withdrawal from OPEC, saying that despite the African country’s suffering from a decline in production in recent years, it was one of the “two largest countries” in Africa within OPEC, along with Nigeria.
He explained that after the decision, Nigeria became the only sub-Saharan African country that produces more than one million barrels per day, pointing out that the production of Congo, Equatorial Guinea and Gabon is less than 300 thousand barrels per day.
Etim pointed out that, in June 2023, Angola received a significant reduction in the production target for 2024 under the OPEC+ agreement, bringing its share to about 1.28 million barrels per day, a decrease of 175 thousand barrels per day from its target for the year 2023.
He added: “It was understood that these numbers were a priority, awaiting further evaluation by 3 secondary sources, and it led to a reduction in its share by 200,000 barrels per day, bringing its share to 1.08 million barrels per day, explaining that this reduction in Angola’s oil production angered it, so It requested a reassessment, and wanted to reach 1.18 million barrels per day.
OPEC member countries
After Angola announced its withdrawal from the Organization of Petroleum Producing Countries (OPEC), the organization now includes the Kingdom of Saudi Arabia, Iran, Iraq, Kuwait, Venezuela, Algeria, Congo, Equatorial Guinea, Gabon, Libya, Nigeria and the Emirates.
At the same time, OPEC is cooperating with 10 countries – led by Russia – that produce crude oil from outside the organization, in what is known as the OPEC+ alliance, which aims to achieve stability in the global oil market, according to what was seen by the specialized energy platform.
The OPEC+ alliance includes, in addition to Russia, Azerbaijan, Bahrain, Brunei, Malaysia, Kazakhstan, Mexico, the Sultanate of Oman, Sudan and South Sudan, and it is expected that starting next year 2024, Brazil will join this alliance.
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