Luanda, Angola, 12 Jan – Angola will almost double its current oil production by 2009 to 2.2 million barrels per day, the biggest increase among Gulf of Guinea petro-states, according to a study published Thursday by the International Monetary Fund.
Daily crude output in Angola is set to climb by 400,000 barrels a year, reaching 1.6 million bpd by the end of 2006 and 2 million bpd in 2007, says the IMF study compiled by economist Damian Mane.
Based on US Department of Energy estimates, the IMF study forecasts that the production gap between Angola and Africa’s biggest oil producer, Nigeria, will be cut from the current 1.5 million bpd to only 600,000 bpd by 2009.
In the period Angola’s oil production will almost double, Nigeria will pump 14.6 percent more crude to achieve a daily output of 2.8 million barrels in 2009.
Production increases in other Gulf of Guinea states over the coming four years will be 29 percent in Equatorial Guinea and 20 percent in the Congo Republic. Output in Gabon will fall in the same period by 100,000 bpd.
The IMF study says that the Gulf of Guinea will become an increasingly more important energy source for the US and Europe, noting that American companies will invest about US$ 10 billion annually over the coming years on oil-related activities in the region.
America and European states are particularly keen to diversify their energy suppliers and reduce dependence on the volatile Middle East.
“Hydrocarbon production in the Gulf of Guinea has potential to satisfy the increased demand for energy products” from these two regions, the IMF report says.
Better quality oil from the Gulf of Guinea, in terms of acidity and low sulfur content, geographical proximity to markets and the fact that most production is offshore, reducing the risk of damage during conflict, make the region an attractive and viable energy supplier.
Total oil revenues from Gulf of Guinea oil producing nations are expected to increase by US$ 350 billion from 2002 to 2019. (macauhub)