Angola's Oil Production Falls Below 1 Million Barrels Per Day for First Time Since Quitting OPEC

Angola's oil production fell to 998,757 barrels per day in July, the lowest level since March 2023. The decline highlights the challenge the government faces in achieving its revenue projections as crude trades below the $70-per-barrel benchmark used in Angola's 2025 budget. Angola is courting investment in its oil industry to stave off a further decline in output.

Angola's oil production has reached a significant milestone, dropping below the 1 million barrels per day mark for the first time since quitting OPEC two years ago. According to data from Angola’s National Agency for Petroleum and Gas, crude output declined to 998,757 barrels per day in July, the lowest level since March 2023 [1].

This decline underscores the government's challenge in meeting its revenue projections, as crude prices remain below the $70-per-barrel benchmark used in Angola's 2025 budget. The southwest African nation is considering seeking financial assistance from the International Monetary Fund (IMF) to address its fiscal situation [1].

Angola has been courting investment in its oil industry to stabilize output, having left OPEC in 2023 due to production quotas set by the group. Companies like Equinor ASA and Chevron Corp. have shown interest, with Chevron recently adding deepwater blocks and TotalEnergies SE approving a $6 billion project last year [1].

However, the country faces inevitable production declines in its oil fields. Angolan Oil Minister Diamantino Pedro Azevedo has described mitigating this decline as the government's "biggest challenge" [1].

Angola had forecast 1.07 million barrels a day for July, with the decline coming ahead of plans to cut exports to 994,000 barrels a day in October from 1.09 million in September [1].

Looking beyond oil, Angola is betting big on natural gas developments. The country is expected to see a significant increase in natural gas output by 2030, with LNG exports set to rise as developers offshore Africa focus on gas to export to Europe and Asia [2]. A recent large gas discovery by Azule Energy, a joint venture of BP and Eni, suggests substantial gas reserves are waiting to be tapped. Azule Energy's CEO, Adriano Mongini, highlighted the significance of this discovery, stating that it opens new exploration opportunities in the area [2].

In summary, while Angola faces challenges in maintaining its oil production, it is positioning itself to capitalize on its natural gas resources to bolster its energy sector and economic stability.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-21/angola-oil-below-million-barrel-level-for-first-time-post-opec
[2] https://finance.yahoo.com/news/natural-gas-could-angola-next-230000287.html