Nigeria’s Oil-Producing Rival Country Set To Make $95m Daily From Oil Sales After Leaving OPEC
- Angola has announced an increase in production and exports following its departure from OPEC
- The government's move to exit OPEC was driven by a proposed production cap of 1.1 million barrels per day
- The country believes that the production cap limits the country's capacity and has decided to leave OPEC
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Angola, an oil-producing rival to Nigeria, is set to achieve its highest oil revenue in four years after leaving the Organization of the Petroleum Exporting Countries (OPEC).
According to shipment data for August, the Central African country plans to sell 1.23 million barrels of oil daily.
Source: Getty Images
Before this, OPEC had attempted to set a production limit of 1.1 million barrels per day, prompting Angola's decision to exit the group.
According to Bloomberg reports, the country aims to increase its production to 1.1 million barrels daily. With an oil price of $86.37 per barrel, Angola stands to earn over $95 million daily.
Why Angola decided to leave OPEC
Angola decided to quit OPEC in December because the production threshold — set by the group after an external review of the nation's capacity — was to be 400,000 barrels a day lower than a prior limit. That would have entrenched output restrictions and made it harder to go higher.
Robert Besseling, CEO of advisory firm Pangea-Risk, said:
“Leaving OPEC has opened further opportunities for investment into the oil and gas sector. It means the US and China are now vying to become Luanda’s favored economic partner."
The Angola government is now offering incentives to oil companies in the country to increase production.
Nigeria's oil production
According to data from the Nigerian Upstream Regulatory Commission (NUPRC), Nigeria’s crude oil production as of April 2024 stands at 1.28 million barrels per day.
This is, however, lower than OPEC's allowable production quota of 1.5 million barrels per day, which could have fetched the country at least $129.55 million daily.
Nigeria discovers another oil well
Legit.ng previously reported that the Nigerian National Petroleum Company Exploration and Production Limited (NNPC E&P Ltd), a subsidiary of NNPC and Natural Limited Oilfield Services Limited (NOSL), announced the successful commencement of oil production at Oil Mining Lease (OML) 13 in Akwa Ibom state.
The NNPC announced this in a statement signed by its chief corporate communications officer, Olufemi Soneye, on Sunday, May 12, 2024.
It said the production, which began on May 6, 2024, with about 6,000 barrels of oil, is expected to be ramped up to 40,000 barrels daily by May 27, 2024.
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Source: Legit.ng
