Due to the lack of investment in the field and the decline in oil wells, Angola’s oil exports in June will fall to the lowest level since at least 2008, with 991,000 barrels per day.
According to the export goods list obtained by the financial information agency Bloomberg, the export volume of Sub-Saharan Africa’s second largest oil exporter will be less than half of what it expected when it joined the Organization of Petroleum Exporting Countries (OPEC). In 2007.
Dominic Smith, an analyst at the consulting firm WoodMackenzie, commented: “The decline in Angola’s production is due to insufficient exploration investment, but it is also the result of the slowdown in exploration investment in these declining wells in the past few years.”
“If investment does not increase significantly, the long-term production situation in Angola will continue to decline,” the analyst warned.
Angola’s oil production has declined significantly since 2016. In 2014, international oil companies sharply cut investment after the price drop in 2014, mainly due to technical difficulties in extracting oil from ultra-deep water, which hurt countries with higher operating costs.
Nigeria is still the largest producer in sub-Saharan Africa. Angola ranks second after surpassing Libya in the war, but with the country’s recovery, Angola’s second place is now under threat, Bloomberg wrote, noting these two The vast majority of the country’s output is for export rather than refinement.
In addition to Libya’s competition, Angola also faces the threat of climate change. The International Energy Agency argued in a report this month that if countries are to achieve the goal of zero carbon dioxide emissions by 2050, they must stop them now. And investment in natural gas projects.
This situation is bad news for Angola. Angola’s oil accounts for more than 90% of exports, but it is also bad news for Mozambique. Mozambique is betting on natural gas projects to ensure the sustainability of public finances and economic development.