As data points to the biggest US crude build since January, the International Energy Agency (IEA) suggested aging fields and a lack of interest in FDI mean the worst is yet to come, Bloomberg News reported.
Shipments from OPEC state Angola are expected to average 1.52 million barrels a day in the January-April 2018 period, the weakest start to a year in terms of outflows since Bloomberg began collating loading monthly programs back in 2008.
The West African country, which exports most of what it pumps, is struggling to entice foreign investment as some of its older fields start to mature, according to the IEA, an adviser to most of the world’s oil-consuming states, Bloomberg News reported. Angola has agreed to keep output at 1.673 million barrels a day or lower throughout 2018, making it OPEC’s second-most compliant member, second to Venezuela, which is beset by an economic and political crisis, has cut by more since the curbs were introduced, according to data compiled by Bloomberg.
Angola’s deep-water oil fields that are more expensive to maintain than onshore ones, and their need for ongoing support are among the reasons behind sliding output since it peaked at 1.9 million barrels a day in 2008, according to the IEA, which predicts the nation’s capacity to produce crude will slump to 1.29 million barrels a day in 2023.
The declines in production from Angola are a boost for OPEC as it seeks to keep production curbed to maintain stable prices. Output from the group’s 14 members was about 32.4 million barrels day in February, according to consultants JBC Energy GmbH, with compliance among the 12 countries who have agreed to cuts still 'very high' at 137 percent.