Angola, the second-largest crude producer in Africa, has officially declared its departure from the Organization of the Petroleum Exporting Countries (OPEC). The decision was announced by Diamantino de Azevedo, Angola’s Minister of Mineral Resources, Oil, and Gas, during the 10th session of the council of ministers under Angolan President Joao Lourenco.
The decision to leave OPEC follows a disagreement over oil output quotas. In June, Angola, along with Nigeria, received lower production targets at the OPEC+ meeting after consistently failing to meet previous quotas. Last month, OPEC+ further reduced Angola’s oil output target to 1.11 million barrels per day (bpd), leading to discontent within the country.
Angola’s oil minister had previously expressed dissatisfaction with the 2024 output target and sent a note of protest to OPEC. The dispute highlights the challenges faced by African members, including under-investment, operational disruptions, and aging oil fields.
The tension between Angola and OPEC may be challenging to resolve, as the country resists accepting reduced output quotas. Angola’s oil production has seen a slight recovery this year but consistently falls short of its allocated targets. In October, it produced 1.17 million barrels a day, which was 110,000 barrels a day below its 2024 quota.
The decision to exit OPEC underscores the complexities faced by oil-producing nations in meeting production targets amid evolving market dynamics and internal challenges. Angola’s departure from OPEC is expected to have implications for its future oil production strategies and relationships within the global oil market.
Source: Business Day