Angola has recently decided to exit the Organization of the Petroleum Exporting Countries (OPEC), effective January 1, 2024, marking a pivotal shift in the global oil industry.
This move, akin to Ecuador’s departure in 2020 and Qatar’s exit in 2019, heralds significant changes in the geopolitical landscape of oil production and distribution.
Angola’s relationship with OPEC traces back to its membership in 2007, joining the organization’s efforts to regulate and coordinate oil production for stable prices and economic sustainability among member nations.
Over the years, Angola has been a substantial contributor to OPEC’s collective output, ranking as Africa’s second-largest oil producer after Nigeria, with an approximate production of 1.1 million barrels per day (bpd).
However, internal challenges have strained Angola’s adherence to OPEC’s production agreements, attributed partly to a decline in investments within its oil sector.
Disagreements over production quotas further strained the relationship. Angola’s recent quota reduction below its actual output at the OPEC+ alliance meeting led to the decision to exit the group.
Minister of Mineral Resources, Oil, and Gas, Diamantino Azevedo, highlighted the lack of modernization within OPEC and the nation’s interests as key factors behind the decision.
This departure signals a turning point for Angola, freeing the nation from OPEC constraints and fostering opportunities for global alliances, particularly with the U.S. and China.
While Angola’s departure may impact OPEC’s share in the oil market, it signifies a strategic shift for the nation’s oil industry.
It opens doors for potential collaborations with the U.S. and China, allowing the nation to expand its oil sector, which has suffered from underinvestment in recent years.
Post-OPEC, Angola aims to prioritize gas investments alongside oil production, aligning with global energy trends.
By leveraging ongoing gas projects and exploring renewable energy sources, Angola seeks to chart an independent path, harnessing its resources while contributing to global sustainability goals.
