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Angola, Africa’s second-largest oil producer, has shockingly left OPEC after over a decade, citing a lack of benefits and disagreements over oil production quotas. The decision follows a bold stance to maintain oil output above OPEC+ limits, signaling Angola’s commitment to its economic interests and charting an independent course in the global oil market.
Highlights
Decision to Leave OPEC: Angola has officially decided to leave the Organisation of the Petroleum Exporting Countries (OPEC) after over 15 years of membership. The decision was made during a cabinet meeting and has received approval from Angola’s President Joao Lourenco.
Reasons for Departure: The Minister of Mineral Resources, Oil and Gas, Diamantino de Azevedo, stated that Angola no longer sees any benefits from remaining in OPEC. The decision is framed as a defense of Angola’s interests, suggesting dissatisfaction with the organization’s current dynamics.
17-Year Membership: Angola has been a member of OPEC since 2006, making its exit a significant development. As Africa’s second-largest oil producer, Angola’s departure is seen as a setback for OPEC, particularly amid ongoing disputes over oil production quotas.
Disputes Over Quotas: Disputes over oil production quotas, particularly regarding African producers’ outputs, have been reported. Last June, Azevedo reportedly walked out of an OPEC+ meeting during intense discussions on this matter.
Output Quota Discrepancy: Angola has expressed its intention to maintain its oil production at over 1.18 million barrels per day, which is higher than the 1.11 million barrels per day quota set by OPEC+ for the upcoming year. This suggests a divergence in production goals between Angola and the organization.
Effectiveness of Contributions: The minister emphasized that Angola’s contributions and ideas within OPEC have not produced the desired effects. As a result, the decision to exit is presented as a logical step when participation in the organization does not yield tangible benefits.
OPEC Background: OPEC, founded in September 1960, initially consisted of Saudi Arabia, Kuwait, Iraq, Iran, and Venezuela. It has since expanded to include 13 member states. The organization has been focused on coordinating oil production policies to stabilize the oil market and ensure a steady income for its members.
Conclusion
Angola’s departure from OPEC marks a significant shift in the geopolitical landscape of the oil industry. The decision reflects Angola’s determination to prioritize its economic growth and control over production levels. As global oil dynamics continue to evolve, Angola’s move sets a precedent for other nations seeking autonomy in shaping their oil strategies. OPEC, facing internal dissent and challenges, must navigate a changing landscape where traditional alliances are being reconsidered. The impact of Angola’s exit reverberates, emphasizing the growing complexity of international cooperation in the pursuit of energy goals.
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