Angola’s oil production has dropped below 1 million barrels per day (bpd) for the first time in two and a half years, and this decline marks a significant moment following its exit from OPEC. In July, the country’s average output was recorded at 998,757 bpd, falling short of the government’s target of 1,073,542 bpd, according to the National Agency for Petroleum and Gas (ANPG). This decline signals the challenges Angola faces in increasing oil production despite its recent decision to leave the organization.
In January 2024, Angola officially exited OPEC after 16 years, citing a disagreement over production quotas. The country aimed to enhance its output, which had been restricted by OPEC+ agreements. This July figure represents the first time since March 2023 that Angola’s production has dipped below the 1 million bpd threshold, highlighting the ongoing struggles in the oil sector.
The decision to leave OPEC stemmed from a dispute regarding reduced production quotas assigned to Angola and Nigeria during a mid-2023 meeting. Both countries had struggled to meet their obligations, largely due to underinvestment in new oil fields and the aging of existing resources. Angola’s officials expressed dissatisfaction with the lower production limits, leading to its departure from OPEC with a commitment to ramp up production.
Despite this pledge, the current output reflects a stagnation. Angola’s oil production peaked in 2008 at approximately 2 million bpd, but has since declined due to rising development costs and a lack of investment in offshore resources. Many international companies have become hesitant to invest in Angola, further complicating efforts to boost production.
As Angola navigates these challenges, officials are exploring ways to better monetize their fossil fuel resources. The country’s struggle with production levels raises questions about its future in the global oil market and its ability to fulfill its ambitions of increased output.
The recent decline in oil production underscores a broader trend affecting some of Africa’s largest oil producers, where consistent investment and development are critical for sustaining and enhancing production capabilities. As Angola continues to grapple with these issues, the impact on its economy and energy sector will be closely monitored by stakeholders both domestically and abroad.
