popular articles

Angola leaves OPEC and increases oil production

Angola, having withdrawn from OPEC, is raising renewed hopes in Asia thanks to its increased oil production, offering greater flexibility in regional supply.
Angola quitte OPEP augmente production

Please share:

Angola, the second largest oil producer in sub-Saharan Africa, recently made waves on the international stage by withdrawing fromOPEC (Organization of Petroleum Exporting Countries). This decision came after a month-long dispute over revisions to its production quota, which Angola saw as a brake on essential investment in its upstream sector. The first signs of production recovery appeared in March, with output recovering from a four-month low to 1.13 million b/d, compared with around 1.11 million b/d in February, according to ANPG (Agence Nationale de Pétrole, Gaz et Biocombustibles).

Impact on Asian markets

As the second largest supplier of crude oil to Asia, after the Middle East, Angola plays a crucial role in the region’s supply strategy. Asian countries, in particular China, India, South Korea and Thailand, are particularly sensitive to fluctuations in Angolan production. China, which receives 80% of Angola’s oil production, sees OPEC’s withdrawal as an opportunity to stabilize and potentially increase its imports. In India, African oil imports hit an all-time low in 2023, at just 4% of their total import basket, partly due to the increased availability of discounted Russian oil.

Opportunities and challenges

Exiting OPEC should theoretically enable Angola to attract more investment in its upstream sector, essential for reversing the downward trend in production seen since 2010, points out a London-based analyst.

“Leaving OPEC may help Angola attract upstream investment, but in the short term we’re unlikely to see a noticeable increase in supplies to China, as China already captures 80% of Angolan production.”

However, there is no shortage of challenges. Aging infrastructure and a lack of exploration activity have hampered Angola’s ability to maintain, let alone increase, production levels. In addition, the departure of international oil companies, mainly from mature basins and fields in West Africa, further complicates the situation.

Regional and global impact

Angolan oil, mainly light and sweet grades such as Girassol, Cabinda and Dalia, is in great demand in Asia due to its superior quality, which adapts well to local refinery configurations. Angola’s increased ability to produce and export without the constraints of OPEC rules could significantly transform the security of oil supply in Asia. This is particularly relevant for Thai and South Korean refiners, who have expressed renewed interest in securing long-term contracts with Angola, given the expected stability of supply.

Angola’s initiative to withdraw from OPEC marks a potential turning point for oil market dynamics in Asia. By increasing production and offering greater flexibility to its Asian buyers, Angola is not only boosting its local economy, but also contributing to greater stability in Asia’s oil supply. However, the long-term impact of this decision will depend on Angola’s ability to overcome its internal challenges and attract the investment needed to maintain an upward production trajectory.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Saudi Aramco is considering new investments in Indian refinery projects after previous failures, as the country boosts refining capacity to meet rising domestic demand.
The Nigerian president has replaced the leadership of the Nigerian National Petroleum Company amid declining output and eroding investor confidence.
The Nigerian president has replaced the leadership of the Nigerian National Petroleum Company amid declining output and eroding investor confidence.
Sinopec has identified over 140 mn tonnes of proven reserves in the Jiyang Basin, marking the largest certified shale oil discovery in China.
Sinopec has identified over 140 mn tonnes of proven reserves in the Jiyang Basin, marking the largest certified shale oil discovery in China.
Boaz Energy II has completed the sale of its oil properties and trust units to T2S Permian Acquisition II, refocusing its operations while maintaining administrative continuity of the PermRock Royalty Trust.
Boaz Energy II has completed the sale of its oil properties and trust units to T2S Permian Acquisition II, refocusing its operations while maintaining administrative continuity of the PermRock Royalty Trust.
Offshore oil group Awilco Drilling PLC enters ex-dividend period on 1 April, marking the detachment of a USD 2.06 per share payment, amid significant cash returns to shareholders.
After several years of negotiations, Uganda officially signs an agreement to establish the Hoima oil refinery, a central project in the country's energy strategy aimed at reducing dependency on fuel imports.
After several years of negotiations, Uganda officially signs an agreement to establish the Hoima oil refinery, a central project in the country's energy strategy aimed at reducing dependency on fuel imports.
The Nigerian national oil company, NNPC, is finalizing the last steps toward its highly anticipated stock market listing, mobilizing investors and financial institutions for what promises to be a pivotal moment in Africa’s energy market.
The Nigerian national oil company, NNPC, is finalizing the last steps toward its highly anticipated stock market listing, mobilizing investors and financial institutions for what promises to be a pivotal moment in Africa’s energy market.
Repsol’s Chief Executive said the company is exploring options with US authorities to remain active in Venezuela following Washington’s decision to end sanctions waivers.
Repsol’s Chief Executive said the company is exploring options with US authorities to remain active in Venezuela following Washington’s decision to end sanctions waivers.
CNOOC Limited has announced the discovery of the Huizhou 19-6 oilfield in the eastern South China Sea, with proven reserves exceeding 100 million tonnes of oil equivalent.
PetroChina posts record net profit in 2024, driven by rising oil and gas volumes and expanded refining and distribution operations.
PetroChina posts record net profit in 2024, driven by rising oil and gas volumes and expanded refining and distribution operations.
EACOP has confirmed the closure of an initial tranche of external financing for its 1,443 km pipeline, as several NGOs urge participating banks to withdraw from the project.
EACOP has confirmed the closure of an initial tranche of external financing for its 1,443 km pipeline, as several NGOs urge participating banks to withdraw from the project.
Chinese oil group CNOOC Limited reported higher net profit for 2024, driven by growing reserves, record production and strict cost discipline.
Chinese oil group CNOOC Limited reported higher net profit for 2024, driven by growing reserves, record production and strict cost discipline.
The US Energy Information Administration reported an unexpected decline in crude oil inventories, reversing analysts' forecasts of an increase, with immediate effects on crude prices.
Cut off from Iranian energy imports by Washington, Iraq accelerates commercial efforts in Africa while resuming oil exports through Turkey to quickly secure new economic and energy markets.
Cut off from Iranian energy imports by Washington, Iraq accelerates commercial efforts in Africa while resuming oil exports through Turkey to quickly secure new economic and energy markets.
Drydocks World has secured a contract to extend the operational life of the Baobab MV10 offshore platform in Côte d’Ivoire by 15 years through refurbishment and upgrade works.
Drydocks World has secured a contract to extend the operational life of the Baobab MV10 offshore platform in Côte d’Ivoire by 15 years through refurbishment and upgrade works.
Amid trade tensions with the United States, Canadian Prime Minister Mark Carney is reviving pipeline projects toward the Arctic to directly access European and Asian markets, diversifying Canada's oil exports.
Amid trade tensions with the United States, Canadian Prime Minister Mark Carney is reviving pipeline projects toward the Arctic to directly access European and Asian markets, diversifying Canada's oil exports.
According to Offshore Energies UK, Britain's oil and gas potential in the North Sea is limited by a tax regime that hinders investments needed to boost national production, increasing dependency on imports.
US authorities have extended Chevron’s temporary licence to operate in Venezuela until 27 May, despite Donald Trump’s warnings of tariffs on imports from countries trading with Caracas.
US authorities have extended Chevron’s temporary licence to operate in Venezuela until 27 May, despite Donald Trump’s warnings of tariffs on imports from countries trading with Caracas.
Senator Yannick Jadot appears in court in Paris for defamation after accusing TotalEnergies of being “an accomplice to war crimes” due to its presence in Russia in 2022.
Senator Yannick Jadot appears in court in Paris for defamation after accusing TotalEnergies of being “an accomplice to war crimes” due to its presence in Russia in 2022.
Shell Brasil approves the offshore Gato do Mato project development, targeting production of 120,000 barrels per day by 2029, further consolidating its position as Brazil’s leading foreign oil producer.
Shell Brasil approves the offshore Gato do Mato project development, targeting production of 120,000 barrels per day by 2029, further consolidating its position as Brazil’s leading foreign oil producer.
The South African government is intensifying efforts to exploit its vast oil and gas reserves to stimulate national economic growth and boost public revenue.
A North Dakota jury ordered Greenpeace to pay more than $665 million to Energy Transfer, triggering international reactions denouncing an attack on freedom of expression.
A North Dakota jury ordered Greenpeace to pay more than $665 million to Energy Transfer, triggering international reactions denouncing an attack on freedom of expression.
Ecuador has detected a new oil spill in a pipeline located in the Amazonian province of Napo, near its main hydroelectric plant, raising concerns over the country’s energy supply.
Ecuador has detected a new oil spill in a pipeline located in the Amazonian province of Napo, near its main hydroelectric plant, raising concerns over the country’s energy supply.
Iraq and the United Arab Emirates have submitted compensation plans to OPEC+ to offset their production surplus in February, amid falling crude prices and the gradual reduction of cuts planned for April.
Iraq and the United Arab Emirates have submitted compensation plans to OPEC+ to offset their production surplus in February, amid falling crude prices and the gradual reduction of cuts planned for April.

Advertising