Angola Set to Surpass Nigeria as Top Oil Producer in Sub-Saharan Africa
Angola announced its exit from the Organization of the Petroleum Exporting Countries (OPEC) following the 10th Session Council of Ministers Meeting on 21 December 2023. The decision will come into effect as from the 1st of January 2024 and is motivated by instruction from #OPEC to set lower production quotas for both Angola and Nigeria.
“When we are in organizations and our contributions, our ideas, do not produce any effect, the best thing is to withdraw.”
Angolan Minister of Petrolem & Gas Diamantino Azevedo
Currently, Angola output oscillates around 1.2 million barrels per day (bpd), but Angola is hungry for much more. Angola joined OPEC in 2007 and together with Nigeria have ranked among the top oil producers in Sub-Saharan Africa. On the other hand, Nigeria is producing 1.3 million bpd. The move by Angola is believed to dampen the windfall profits that OPEC had anticipated as a consequence of the Red Sea Crisis.
Oil accounts for 90% Angola’s exports and contributes 40% to its #GDP. The top export markets for Angolan oil are China, India and United Arab Emirates. Interestingly, exports to Spain doubled to 548,000 tonnes in October 2023 compared to the same month in 2022. The trend is a result of countries looking for alternative to Russian oil and gas due to the war in Ukraine.
In October 2023, Angola opened bidding for twelve Oil Blocks in Lower Congo Offshore and Kwanza Onshore Basins. Several large oil companies which already operate in Angola — including Total Energies, Eni Energies and Trafigura — have shown interest.
From 5 to 10 December 2023, Angolan Foreign Minister Tete Antonio was on official visit to China. With Chinese Minister of Commerce Wang Wentao, he inked a reciprocal Investment Promotion and Protection Agreement (IPPA). With this accord in place, it is believed that it will spur more Chinese #ODI into the oil and gas sector in Angola.
With new investments expected in the oil industry, Angola hopes to significantly increase its oil production. Free from the quotas set by OPEC, Angola has now more leeway to maximize its capacity.
