In August, Angola is set to export the highest volume of oil in nearly four years, signaling the rationale behind its decision to leave OPEC.
Loading plans indicate shipments will reach 1.23 million barrels per day, exceeding OPEC’s proposed production limit of 1.1 million barrels per day for Luanda, which prompted Angola’s departure from the group.
This move allows Angola greater flexibility in increasing its output, unaffected by monthly export variations.
Paul McDade, CEO of Afentra Plc, noted Angola’s strategic focus on production growth, stating, “They have a very clear mandate to grow production in Angola.”
He highlighted the government’s ambition to surpass the previous limit of 1.1 million barrels per day in an interview.
Angola’s decision to exit OPEC in December was driven by disagreements over production thresholds that would have restricted its output potential.
According to Robert Besseling, CEO of Pangea-Risk, this decision has opened doors for increased investment in Angola’s oil and gas sector, intensifying competition between the US and China for economic partnerships with Luanda.
McDade emphasized that the government’s supportive measures, such as granting license extensions and favorable fiscal terms, have encouraged exploration companies like Afentra to invest more in Angola.
Investments in field expansion and reservoir management by Angola’s oil producers have contributed to stabilizing production despite challenges.
August’s export surge also reflects adjustments in shipment schedules from July, according to Dylan Hattingh, an analyst at Energy Aspects.
Hattingh highlighted ongoing investments in offshore assets and anticipates sustained growth under competent operational management.
This trend underscores Angola’s resilience in the global oil market and its strategic initiatives to bolster production capabilities.
