BAKU, Azerbaijan, January 22. Angola's withdrawal from OPEC has had a minimal impact on the global oil market, the International Energy Agency (IEA) said, Trend reports.
Angola officially withdrew from OPEC as of January 1, 2024, citing its perception that its role within the organization was "not relevant". This decision followed the public rejection by the West African producer of the bloc's choice to reduce its 2024 production ceiling from 1.28 mb/d to 1.11 mb/d, a decision initially established in June.
During its final month in OPEC, which was December, Angola increased its crude oil production to 1.12 mb/d, a month-on-month rise of 40,000 b/d, the IEA said.
The global impact on oil markets has been minimal, the agency noted, adding that Angola has experienced a declining output trend for several years due to underperforming assets and operational challenges.
With Angola's departure, OPEC membership was reduced to 12, and the total OPEC+ membership decreased to 22. Additionally, this exit diminishes the group's market share to 48 percent in the current year, marking the lowest since the alliance's establishment seven years ago, the agency noted.
According to the IEA, upon joining OPEC in 2007, Angola's crude oil production stood at 1.6 mb/d. From 2008 to 2016, output stabilized within the range of 1.7-1.8 mb/d before entering a decline, intensified by operational challenges.
To counter this decline, Luanda introduced new fiscal incentives in 2018, aimed at encouraging companies to explore and develop existing assets, including marginal fields. Despite these efforts and several subsequent amendments to its fiscal terms, the measures have succeeded in curbing the decline but have not led to a significant boost in production.
