Angola’s withdrawal from Opec+ will not have a huge impact on oil prices.
Mr. Choeib Boutamine
December 26, 2023
Speaking to Bloomberg, Energy Expert and CEO of Ranadrill Consulting Mr. Choeib Boutamine says that Opec+ will not be impacted by Angola’s withdrawal, as the country produces only 2.6% of OPEC+ oil.
He describes Angola’s sudden withdrawal from OPEC+ as a shortsighted decision that will not bear fruit for the country shortly.
Mr. Choeib Boutamine highlights that the president of Angola wants to be liberated from the restrictions of Opec+. However, Angola’s main exportation revenue comes from Hydrocarbons (90 percent), and the production of a single barrel in the country costs $ 40, which is very costly in comparison to oil production in countries like Saudi Arabia and Algeria.
Moreover, the Angolan national hydrocarbons company SONANGOL contributes to producing only 20% of Angolan oil, while foreign companies dominate the rest. The already mentioned facts reflect the importance for Angola to stay under a powerful and impactful bloc as such the Opec+, and not the other way around.
