Angola’s crude production slipped below 1 million barrels a day in July, marking the lowest level since March 2023.
- Angola’s crude oil production dropped below 1 million barrels per day in July, the lowest since March 2023.
- The decline in output, documented at 998,757 barrels daily, missed governmental projections of 1.07 million barrels.
- Lower production may challenge revenue targets due to oil prices trading below Angola’s budget benchmark.
- The nation targets reduced reliance on resource-backed loans, with notable decreases in oil-backed debt to China observed.
Output fell to 998,757 barrels per day, according to data from the National Agency for Petroleum and Gas (ANPG), missing the government’s projection of 1.07 million barrels.
The decline threatens to undermine revenue targets as oil prices trade below the $70-per-barrel benchmark set in the 2025 budget.
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The southwest African nation, which quit OPEC in 2023 after clashing with the group over quotas, has been working to sustain output above the million-barrel threshold, according to Bloomberg.
Officials are now weighing financial support from the International Monetary Fund, though no formal request has been made, the Washington-based lender said.
Angola has sought new investment to stem the decline. Equinor ASA and Chevron Corp. have recently expanded activities, while TotalEnergies SE approved a $6 billion project last year.
Still, Oil Minister Diamantino Pedro Azevedo has warned that mitigating falling production remains the government’s “biggest challenge.”
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Debt reduction, export outlook
At the same time, Angola is moving to reduce reliance on resource-backed loans, as it confronts a difficult global backdrop of volatile commodity prices, high interest rates, and fragile investor sentiment.
Oil-backed debt to China, which stood at $10.15 billion at the end of 2024, decreased to $8.94 billion by July, according to official data. Authorities project the total will drop further to between $7.5 billion and $8 billion by year-end.
Meanwhile, crude exports are also set to contract, with a preliminary schedule showing shipments will fall to 994,000 barrels per day in October from 1.09 million in September, according to ANPG.
