Just one third of Angola’s oil production remains in the country

27 April 2006

Luanda, Angola, 27 April – The Angolan state receives just one third of total oil production in the country, which is currently estimated at 1.4 million barrels per day, with the remainder going to the companies operating in Angola, as a way of recovering their large investment in the industry.

The figures were published in Luanda by Amadeu Azevedo, national director of Petroleum, speaking on the sidelines of the preparatory work carried out for the meeting of Ministerial Council of African Petroleum Producers Association (APPA), which is due to be held Friday in the Angolan capital.

According to Azevedo, not including tax revenues, the Angolan state pockets just 32 percent of the country’s total oil production.

Oil companies operating in Angola keep half of the production as a way of recovering the investments made for oil exploration, while the other half is split between those companies and the State, represented by oil company Sociedade Nacional de Combustíveis de Angola (SONANGOL).

In order to try and change this situation, Azevedo said that the country was focused on training Angolan staff and increased participation of Angolan companies in the oil business, a sector which the State hopes will be dominated by national companies, in order to increase internal revenues.

Azevedo said however that Angola’s oil production could increase more quickly that had been forecast, saying that it could reach 2 million barrels per day by the end of 2007.

Estimates from Sonangol pointed to this level of production being reached in 2008.

Angola is the second-largest oil producer in sub-Saharan Africa, after Nigeria, and currently produces 1.4 million barrels of oil per day.

The country’s oil reserves are estimated to be around 12 billion barrels, and the Angolan offshore area is divided into 74 blocs, of which only 30 are currently under operation. (macauhub)