OPEC announced on Wednesday its intent to maintain cooperation and dialogue within the broader OPEC+ producer alliance, despite the recent decision by Angola, an OPEC member, to exit. In response to Angola’s announcement of its departure last month, OPEC has scheduled a meeting on February 1, 2024, to evaluate the implementation of the most recent oil output cut. The business enterprise emphasised in a assertion that the sustained collaboration in the Organization of the Petroleum Exporting Countries and its allies, consisting of Russia, may have positive implications for “all producers, consumers, and investors, as well as the global economy at large.”
Angola’s choice on December 21 to go away OPEC, powerful immediately, induced a decline in oil costs and brought on analysts to impeach the solidarity of each OPEC and the broader OPEC+ alliance. The unexpected departure has raised concerns about the cohesion of these groups, underscoring the need for ongoing communication and joint efforts to navigate the evolving dynamics of the global oil market.
A decade ago, Angolan oil production was around 1.8 million barrels per day (bpd). However, production felt a slowdown last year, falling below 1 million bpd before recovering to rise around the 1.0 million bpd mark The latest data showed that production levels were 11.4 million bpd in October and 1.08 million bpd in November, reflecting recent changes in Angolan oil production volumes.
At the same time, Equinor has announced participation in two oil exploration fields in the oil-producing West African nation. The move displays Norway’s already large funding in Angola’s oil sector, and marks a in addition boom in its involvement withinside the region’s oil and fueloline sector.
“Angola, one of the largest value contributors in Equinor’s international portfolio, is a nation blessed with prolific oil & gas resources, and one where Equinor has equity production across three blocks.” a Senior Vice President of Equinor said on LinkedIn.
Angola’s decision to withdraw comes in response to its protest against OPEC+’s resolution to reduce the allocated output quota for the year 2024.
The disagreement played a role in postponing OPEC+’s most recent policy meeting in November, leading to a delay in reaching a consensus on implementing new output restrictions.
Reuters quoted Ali Al-Riyami, former Director-General of Marketing at the Omani Ministry of Energy, stating that what has happened indicates there is no consensus within OPEC itself, and this has been the case for some time.
