Arab Today, arab today angola\s oil output goals remain elusive
Last Updated : GMT 07:08:58
Arab Today, arab today
Arab Today, arab today

Angola\'s oil output goals remain elusive

Arab Today, arab today

Arab Today, arab today Angola\'s oil output goals remain elusive

Luanda - AFP

Despite colossal investment, Angola's goal of pumping two million barrels of oil a day and even upstaging Nigeria as Africa's largest producer remains a pipedream. To be sure, Angola's oil industry is going gang-busters. State-owned oil firm Sonangol recently announced an $8-billion investment programme and began to flog ten on-shore concessions. Total is slated to invest $16 billion, while other global energy companies ENI, Statoil and ConocoPhillips also have plans to put more work boots on the ground. This has led officials to predict, again, that the country will break the symbolic production level of two million barrels a day and that it could even get within striking distance of Nigeria's 2.5 million a day rate. Angola is keen to reach that level of production because, as well as two million being a nice round number, it would represent a significant boost for Africa's third-largest economy. The black gold lying off the coast of the capital Luanda and the Cabinda enclave accounts for 30 to 40 percent of economic output and around 80 percent of government income. Oil wealth has made many insiders rich, but has also been used to fund reconstruction since a devastating civil war ended in 2002. And yet, the faster Angola pumps, the further it seems from its target. Industry insiders say a mix of technical problems, infrastructure bottlenecks and state intervention means any attempt to retake the title of Africa's largest oil producer, which Angola briefly held in 2008, is likely to end in failure. - 'Difficult to overtake Nigeria' - Last year crude production fell 1.1 percent to 1.71 million barrels a day, a disappointing showing after a 4.5 percent jump the previous year. That raised the ire of Sonangol's chief Francisco de Lemos, who demanded "explanations" from the heads of Chevron, Total, Esso and BP about a series of problems that contributed to the drop. Maintenance work, mechanical damage and delays in delivering technical equipment have all taken their toll. Foreign operators complain that the delays often stem from Sonangol's insistence that it gives final approval to any construction or technical work. Amid the mudslinging, Fitch has downgraded Angola's credit rating outlook from positive to stable, a move that could make foreign investors more cautious. "Expanding the hydrocarbon sector has proved more challenging, compared with what was expected," the ratings agency said. But geology is also a factor in the decline. Angola's expensive-to-drill "ultra-deep" blocks and the "maturing" shallow-water concessions will limit production, according to Alex Vines of UK-based think tank Chatham House. Fitch estimates Angola's output is declining at a rate of around 200,000 barrels per day, each year. "It will be difficult for Angola one day to overtake Nigeria, which has much larger reserves and currently superior production capacity," said independent consultant Jose de Oliveira. While new discoveries will push Angola's reserves beyond its current proven reserves of 12.7 billion barrels, that still lags far behind Nigeria's 37.2 billion. "The new operations launched this year and next year won't push production to two million barrels because at the same time older oil fields are producing less," said de Oliveira. He added there was "no point" in targeting record production when much of the revenue is being lost to corruption, he added. By some estimates, billions of dollars have vanished while around two-thirds of the 19 million Angolans wallow in extreme poverty. Facing problems likes these -- and the outlook for oil prices is weak -- less may be better for Angola's oil industry.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today angola\s oil output goals remain elusive Arab Today, arab today angola\s oil output goals remain elusive

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 21:32 2017 Friday ,24 February

Dubai announces crude oil price for May

GMT 13:37 2017 Thursday ,23 February

Oman oil price rises 30 cents

GMT 05:33 2017 Thursday ,23 February

Oil slips but close to multi-week high

GMT 17:44 2017 Wednesday ,22 February

Gasoline 98 octane price surges LL100
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday