Angola withdraws from OPEC, disagreement with oil quotas

They are bouncing back within OPEC+, which brings together oil-exporting countries. Angola, an oil heavyweight on the African continent, has decided to withdraw from the organisation. The reason: disagreements over the reduction in quotas desired by the world's main producers.

The OPEC logo, outside the organization's headquarters in Vienna, Austria, in March 2022. AP - Lisa Leutner

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Angola's decision was announced on Thursday (December 21st) by the Minister of Natural Resources, Oil and Gas, Diamantino Pedro de Azevedo following a Council of Ministers. President João Lourenço signed a presidential decree in the aftermath.

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This is not a rash, ill-timed decision " said the Minister. " "So far, we have not had any influence on quotas, but if we were to stay in OPEC, we would suffer the consequences of the decision to meet production quotas," he told public broadcaster TPA. "One of OPEC's mechanisms is the allocation of production quotas for its member countries. And it is certain that by continuing within this mechanism, sooner or later, Angola would have been forced to reduce its production, which goes against our objectives of stabilizing it," the minister explained.

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We have always done our duty, but Angola has seen fit to leave. The time has come for our country to focus more on its goals," the minister said on television. Angola has been very active "but our role in the organization doesn't seem relevant to us right now," he said, adding. "The current results do not serve our interests."

At the end of November, Angola and Nigeria, the two oil heavyweights on the African continent, were unhappy with their quotas. OPEC had set a quota of 1.11 million barrels per day for Angola. Luanda had made it clear that it wanted to maintain its production at 1.18 million barrels per day.

Founded in 1960, OPEC, which has 13 members under the leadership of Saudi Arabia, formed an alliance with 2016 other countries, including Russia, in <> in the form of an agreement called OPEC+, with a view to limiting supply and supporting prices in the face of challenges posed by American competition.

Angola's departure could therefore be part of President João Lourenço's strategy "to foster close ties with the United States," said Marisa Lourenço, a political and economic risk analyst specialising in the region, quoted by AFP.

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  • Angola
  • Petroleum
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  • Economy