Angola’s Mineral Resources Minister, Diamantino Azevedo, has provided further clarification on the country’s decision to withdraw from the Organization of Petroleum Exporting Countries (OPEC). Azevedo explained that Angola is actively promoting investments aimed at sustaining a production level surpassing 1 million barrels a day (MMbpd), and OPEC’s imposed quota restrictions are hindering the nation’s plans to stabilize crude production above this threshold.
The decision to exit OPEC in December followed the group’s imposition of a significantly lower production limit. This tighter cap posed a challenge for Angola, which is working to attract investment after years of underinvestment and production decline.
Minister Azevedo, in a speech delivered in Luanda, stated, “This organization no longer aligns with Angola’s values and interests.” He emphasized that the production quotas imposed against the country’s wishes were conflicting with its actual capabilities and needs, leading to the formal decision to withdraw.
Angola’s oil production briefly fell below 1 MMbpd last year, a significant decline from over 1.8 MMbpd a decade earlier. To revitalize the industry, the national petroleum agency has initiated investor roadshows and introduced licensing rounds to auction off blocks.
Minister Azevedo affirmed the oil ministry’s commitment to promoting investments that will sustain production above 1 MMbpd. The decision to exit OPEC is seen as advantageous if it allows Angola to maintain activity in its oil industry, according to Robert Besseling, Chief Executive of Pangea-Risk, an advisory firm specializing in the analysis of African economies.
Besseling remarked, “If Angola’s investment plans materialize and financing is assured, the country’s departure from OPEC will leave it in better stead.” He highlighted the government’s urgent need for higher oil revenues to address fiscal pressures and stabilize its depreciating local currency.
The fractures in Angola’s 16-year membership in OPEC surfaced in June when officials abruptly left a Vienna meeting after African members faced pressure to reduce their quotas. Following a significant reduction in Angola’s production limit to 1.11 MMbpd at the group’s November gathering, the country vowed to disregard the restriction. The current government in Angola aligns more with the United States and Western oil companies, making a break from OPEC+, dominated by Russia and Saudi Arabia, fitting into its strategic vision, according to Besseling.