Credit lines cover fall in Angolan oil exports

16 June 2014

Lower oil revenues in Angola, estimated to be down US$4.5 billion, have been covered by credit lines amounting to US$5.6 billion guaranteed by countries and institutions, reports the Angolan weekly Expansão.

The magazine explains that the government’s diplomatic offensive in countries such as the United States, China and France, and international institutions such as the World Bank and the African Development Bank, has allowed Angola to assure more than US$5.6 billion and thereby enable infrastructure construction projects to continue.

Those credit lines come at time when oil revenue has been falling, since 2012. This is not so much due to international crude prices but to lower well production, a situation that several studies indicate will continue until 2017.

Finance Ministry figures indicate that in the first four months of this year revenue was down 151 billion kwanzas (US$1.5 billion), -12.6 percent, over the same period in 2013.

In 2013 revenue was 400 billion kwanzas (US$4 billion) less than in 2012. At that rate Angola should lose oil revenue amounting to 850 billion kwanzas (US$8.5 billion) in two years.

The decline in the first four months of this year was mainly because oil barrel exports were down by more than 18 million (-9.5 percent) to a total of just over 192 million barrels. (macauhub/AO)