Diamantino Azevedo – Angola’s Minister of Mineral Resources disclosed about the nation’s intention to quit the Organization of Petroleum Exporting Countries(OPEC)

By Abdul Rahman Bangura-

Luanda, Angola
Photo Credit: Africa Business Communities

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- …Angola is presently anticipating ventures that will retain production above 1 million barrels per day, MMbpd, and that OPEC’s quota limitation makes hindrances to Angola’s plans to stabilize crude production above 1 MMbpd.

Angola’s December exit from OPEC came after the group imposed a much lower production limit. The neatly tie cap was very much for Angola, that makes to boost investment after many years of underinvestment and production decline.

“This organization no longer aligns with Angola’s values and interests,” Mineral Resources Minister Diamantino Azevedo stated in a speech in Luanda on Wednesday. After the imposition against the nation’s wishes of “production quotas challenging our actual capabilities and needs, we made the formal decision to withdraw our country,” he noted.

Angola’s succinctly dipped below 1 MMbpd in 2023, down from more than 1.8 MMbpd a decade earlier, according to data compiled by Bloomberg. Its global petroleum agency has liftoff investor roadshows and offered a series of licensing rounds to auction off blocks.

The oil ministry is geared towards revamping ventures that will retain production above 1 MMbpd, Azevedo noted.

Angola’s decision to exit the group will prove beneficial if it means the country can sustain activity in its oil industry, according to Robert Besseling, chief executive of Pangea-Risk, an advisory firm focusing on analysis of African economies.

“If Angola’s investment plans materialize and financing is assured, the country’s departure from OPEC will leave it in better stead. The government desperately needs higher oil revenues to resolve fiscal pressures and buffer its depreciating local currency,” Robert Besseling – Chief Executive of Pangea -Risk noted.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent