https://www.engineeringnews.co.za
Africa|Flow|Gas|Petroleum|Projects|Flow|Drilling
Africa|Flow|Gas|Petroleum|Projects|Flow|Drilling
africa|flow-company|gas|petroleum|projects|flow-industry-term|drilling

Angola’s modest oil output goal reveals a truth on global supply

10th September 2021

By: Bloomberg

  

Font size: - +

Want proof of how hard it is for some oil-producing countries to lift supply? Look no further than the west African nation of Angola.

State Secretary for Petroleum and Gas Jose Barroso said Thursday that the country aims to keep production above 1.1-million barrels a day in the coming years.

As ambitions go it’s a very modest one: in 2007, when Angola joined the Organization of Petroleum Exporting Countries, it was pursuing a production target of 2-million barrels a day. It highlights a schism within OPEC+, the alliance of global producers who are meant to be boosting their collective production: some nation’s can -- others are struggling.

Angola has the right, under the terms of the pact, to pump 1.33-million barrels a day in September, increasing to 1.45-million barrels by April. Instead, production has been going in the opposite direction, drifting lower even as its OPEC+ target has been rising.

The country relies on foreign oil companies to extract crude from fields thousands of meters below the waters of the Atlantic Ocean. The 2014 oil price crash hit investment in its oil sector hard and production began to fall two years later, when the flow of projects that were already in development came to an end. Crude production fell by a third in little more than four years.

More recently, the nation’s production problems have been compounded by disruption from Covid-19, that has forced companies to delay drilling at existing oilfields, according to Dominic Smith, an upstream research analyst for sub-Saharan Africa at Wood Mackenzie.

If Angola can’t rekindle the interest of foreign oil companies, who are already turning away from costly and uncertain deepwater projects in the face of climate change, even its new output target may soon look optimistic.

Edited by Bloomberg

Comments

Showroom

Stewarts & Lloyds
Stewarts & Lloyds

Stewarts & Lloyds today supplies steel and tube, pipe and fittings, valves, pumps, irrigation, fencing, profiling and roofing products. The cash...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.162 0.217s - 140pq - 2rq
Subscribe Now