The consultancy Fitch Solutions believes that oil production in Angola will fall by 20% until 2031 due to the maturation of oil wells and the chronic lack of investment in new discoveries.
“The main reason for the lackluster growth in oil production is the legacy effect of oil well maturationsays Fitch Solutions in a commentary note on keeping production below the limit set by the Organization of the Petroleum Exporting Countries (OPEC).
“The drop in production from Angola’s current wells means that a higher production growth rate is needed to maintain production at current levels; Angola needs more 36,000 barrels per day of production to offset the impact of natural decline“, say the analysts of this consultancy owned by the same owners of the financial rating agency Fitch Ratings.
In the commentary, sent to clients and seen by Lusa, Fitch Solutions writes that “Angola has seen a small increase in production levels, with the start-up of several small projects, but this quarter we anticipate that the small increase in stagnant production, returning to a negative growth in 2023materializing the effect of the fall of the wells”.
Angola’s production has hovered around 1.1 million barrels a day since the beginning of the year, well below the OPEC limit of around 1.5 million barrels a day.
“The new limit for Angola under full OPEC production is well above production capacities and past growth rates indicate that there is a very low probability that Angola will approach OPEC limits any time soon. ”, the analysts conclude.
Source: Observadora
