"For 2021, the initial forecast was 1,220,400 barrels of oil/day, however there was an interim adjustment and we have a forecast of 1,193,420 barrels and what we are doing is to fulfill this new forecast", said the minister of Mineral Resources, Oil and Gas, Diamantino Azevedo, in an interview with Lusa.
The official recalled that the national production comes mainly from mature fields, which have already reached a peak of production and are in a declining phase, which can only be reversed or mitigated with investments in research, having been approved a national strategy to increase the knowledge about the oil potential in Angola.
Also in 2020, the target of 1,283,450 barrels per day was below expectations and Angola produced only 1,271,460 barrels.
"Due to covid-19, the price of oil fell significantly, which also led to a delay in drilling for new wells, which is very important for the sustainability of the forecast", explained Diamantino Azevedo.
Last year was marked by sharp drops in oil prices, leading the Organization of Petroleum Exporting Countries (OPEC), to which Angola belongs, to act to balance the market, adjusting production.
With projections pointing to an increase in global oil demand between 2022 and 2025, driven by the return to growth of some economies, reflections on prices are expected, but Diamantino Azevedo is cautious about a possible revision of the value defined in the General State Budget ($39).
"We do not have a forecast of reviewing the forecasted price until this moment. It is certain that we would be satisfied if the average price were above the forecast in the budget," he declared.
The government official admitted that there was a lack of investment in the sector, stressing that, when he took up his duties, in October 2017, it was clear that changes would be needed, which the executive has been promoting.
Among these, he highlighted the introduction of a new governance model in which the concessionary function to the state oil company Sonangol was removed, now assumed by the National Oil, Gas and Biofuels Agency (ANPG), the creation of a regulatory institute and the launch of a program of oil block tenders extending until 2025, as well as changes to the legislation to facilitate investment.
"We will soon launch, through ANPG, a study on the competitiveness of the oil industry in Angola, which will be an instrument to improve the business environment in Angola," he said.
The Government has also been working on increasing the country's oil refining capacity, anticipating the construction of three new refineries in Cabinda, whose works have already started, Soyo, currently in negotiations with the American consortium that won the tender, and Lobito, whose project is further behind, although the minister still intends to complete the infrastructure in the current term.
"It was necessary to make adjustments to the project because we were not satisfied with the cost of capital," stated Diamantino Azevedo, adding that the review of the technological and economic component has already ended and the project will soon be resumed.
Also "advanced" is the process around the exploration of non-oil gas, through a consortium in which Sonangol and multinationals operating in Angola (BP, Chevron, Total and Eni) participate.
"We are finalizing everything so that the consortium can finally enter into action soon," said the government official, without advancing dates.
