Angola’s oil production falls 2.6 pct in 2014

26 February 2015

Oil production by Angola’s national oil company Sonangol decreased by 2.6 percent in 2014 compared to 2013 to 1.671 million barrels per day, the group’s chairman said Wednesday in Luanda.

Francisco de Lemos José Maria, who was speaking during a meeting to present the annual results of the group, said that as a result profit in 2014 fell by 77 percent to US$710 million.

The chairman of Sonangol admitted that 2014 was a “very difficult” year, in which targets were not reached, and that this performance was due to ” a sharp and abrupt decline in oil production.”

In this period Angola’s oil production fell to it lowest ever in March, to 1.474 million barrels per day.

In the second half of 2014, Francisco de Lemos Jose Maria said, there was “a sharp drop” in oil prices on the international market affecting results, despite the increase in production seen meanwhile, with the price per barrel of oil exported falling from US$110.64, in june, to US$57.91 in December.

Production problems and the fall in international prices affected Sonangol’s performance, with the profit at Angola’s largest state company falling from US$3.089 billion in 2013 to US$710.3 million in 2014, or a drop of 77 percent.

Sonangol’s sales in 2014 totalled US$36.476 billion, a drop of 11.6 percent compared to 2013. (macauhub/AO)