Category Archives: Angola

OPEC December oil output rises before new cuts, Angola exit – Reuters survey

A 3D-printed oil pump jack is seen in front of displayed OPEC logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/File Photo


OPEC oil output rose in December, a Reuters survey found on Friday, as increases in Iraq, Angola and Nigeria offset ongoing cuts by Saudi Arabia and other members of the wider OPEC+ alliance to support the market.

The Organization of the Petroleum Exporting Countries pumped 27.88 million barrels per day (bpd) last month, the survey found, up 70,000 bpd from November. Output is down more than 1 million bpd from the same month a year ago. PRODN-TOTAL

The boost comes ahead of further OPEC+ cuts in 2024 and Angola’s exit from OPEC, which are set to lower January output and market share. OPEC’s market share has already been falling due to output restraint and the departure of some members.

In December, the biggest increases of 60,000 bpd came from Iraq and Angola, which both boosted exports, the survey found.

Nigeria also shipped more crude abroad without, as yet, beginning oil products output at its new Dangote refinery.

The Reuters survey, which aims to track supply to the market, is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from companies that track flows such as Petro-Logistics and Kpler and information provided by sources at oil companies, OPEC and consultants.

Source: CNBC Africa, 5th January 2024


Angola to leave OPEC over disagreement on oil production quotas

Oil minister says the country ‘gains nothing’ from remaining in the group after disagreements emerge over production cuts.

OPEC has agreed to production cuts as it seeks to boost the price of oil, a move Angola had objected to [File: Dado Ruvic/Reuters]

Angola says it will leave the Organization of the Petroleum Exporting Countries (OPEC) over a disagreement regarding production quotas, a move that will bring the group down to 12 members.

Speaking on public television on Thursday, Diamantino Azevedo, minister for mineral resources, petroleum and gas, said Angola, which produces about 1.1 million barrels of oil a day, is leaving OPEC because it was not serving the country’s interests.

“We feel that … Angola currently gains nothing by remaining in the organisation and, in defence of its interests, decided to leave,” Azevedo was quoted as saying in a statement issued by the president’s office.

Angola, which first joined OPEC in 2007, has struggled to meet production quotas over the past several years. The country is joining others, such as Qatar and Ecuador, that have left OPEC in the past decade.

Questions about potential production cuts sought by leading oil producers such as Saudi Arabia have been a source of recent debate within the group.

Without Angola, OPEC countries will produce about 27 million barrels of oil per day, about 27 percent of the global supply.

But while Angola was a relatively small player in OPEC, the country’s departure has raised larger questions about the future of the organisation.

Crude prices dropped by more than 1.5 percent after the announcement.

“From an oil market supply perspective, the impact is minimal as oil production in Angola was on a downward trend and higher production would first require higher investments,” said Giovanni Staunovo, a commodity analyst with UBS.

“However, prices still fell on concern of the unity of OPEC+ as a group, but there is no indication that more heavyweights within the alliance intend to follow the path of Angola.”

Oil and gas make up about 90 percent of Angola’s exports and are a crucial economic lifeline for the country.

Last month, Azevedo’s office protested against an OPEC decision to reduce its production quota for 2024, concerned that it would damage Angola’s ability to increase its output capacity.

OPEC and its allies in OPEC+ have agreed to cut production to prop up oil prices.

Angola’s production capacity peaked in 2008 at 2 million barrels per day but has dropped since due to ageing infrastructure.


Nigeria Reclaims Africa’s Top Oil Producer Spot

Chineme Okafor in Abuja

Nigeria may have reclaimed its position as Africa’s top oil producer which it lost to fellow African oil producer, Angola earlier in March 2016.

According to the December 2016 Monthly Oil Market Report (MOMR) of the Organisation of Petroleum Exporting Countries (OPEC), crude oil production from Nigeria rose slightly above that of Angola even before the January 2017 planned production cut agreed by OPEC and non-OPEC producers.
Angola would be expected to cut about 78,000 barrels per day (bd) of its production in the agreement which was sealed in late 2016.

But secondary sources in the MOMR indicated that in November, Nigeria and Angola produced 1.692 million barrels (mb) of oil apiece. Similarly, information from primary sources in the MOMR stated that Nigeria produced 1.782mb of oil as against Angola’s 1.688mb to show its takeover of Angola by about 94,000bd.

“According to secondary sources, OPEC crude oil production in November increased by 151tb/d compared to the previous month to average 33.87mb/d. Crude oil output increased the most in Angola, Nigeria and Libya, while production in Kuwait and Saudi Arabia showed the largest decline.
“A new OPEC-14 production target of 32.5mb/d as per 1 January 2017 represents a reduction of around 1.2mb/d from October production levels,” said OPEC’s December MOMR.

Earlier in the year when Nigeria lost its position as Africa’s largest producer, its output fell to about 1.677mb, as against Angola’s 1.782mb then.

The development was made possible by repeated attacks on Nigerian oil infrastructure by militants in the Niger Delta. This dragged the country’s daily oil production down by about 700,000bd as reported by the Nigerian National Petroleum Corporation (NNPC) in July, and further confirmed by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.
Though Nigeria is still far from recovering to its full capacity, it has also secured a production cap exemption from the rest of OPEC and non-OPEC members on the basis of the attacks on her oil infrastructure.

The Niger Delta Avengers, which is majorly responsible for the production disruption, claimed it was fighting for socioeconomic equality in the region. Although, the group and other militants in the region agreed to a ceasefire against further attacks in September 2016, they have however indicated their intentions to resume hostilities following their claims of government’s indifference to their demands.

While a committee responsible for monitoring whether the agreed upon cuts by OPEC and non-OPEC members are being made will meet in Vienna on 21 and 22 January to hash out a way to monitor compliance with the deal, Saudi Arabia, Kuwait, Iraq and Venezuela are already honouring the commitment to cut output.

Source: Thisday, January 10th, 1017


Establishment of companies in Angola

With the new law of August 2015 any investor small or large can start up business activity in Angola without a minimum capital investment and with the advantage of being able to repatriate profits, dividends and capital gains.
Those who are willing to invest at least $ 1m, the new law could grant tax incentives and advantages from a case to case basis.
There are the following constraints: Investors who are willing to put money in one of those following sectors:

  • electricity and water
  • hotel business and tourism
  • transport and logistics
  • civil construction
  • telecommunications
  • information technology and media

must have

  1. a partnership with Angolan citizens or Angolan companies, with the Angolan partner having at least 15 % of the share capital
  2. effective participation of the Angolan partner in the management of the company, clearly stated in the shareholder agreement

The definition of an Angolan company is a company with registered address in Angola and with a minimum of 51 % shareholding belonging to an Angolan citizen.

The company Dusira UG is cooperating with Angolan companies we personally know and will give assistance in establishing companies in Angola.

Phone: +491737692688