In a move signaling a potential shift in the global oil landscape, Angola announced its exit from the Organization of the Petroleum Exporting Countries (OPEC) at the end of 2023, effective from 01 January 2024. This decision, driven by Angola's ambitious production goals and conflicting OPEC quotas, marks the latest in a series of departures from the oil cartel in recent years.
Angola's primary motivation for leaving OPEC stems from its desire to significantly increase crude oil production, exceeding 1 million barrels per day (B/D). However, this objective clashed with OPEC's latest production quota allocations, which restricted Angola's output to 1.11 million B/D .Unwilling to compromise its production targets, Angola made the strategic decision to part ways with the cartel, following a similar path taken by other oil-producing nations such as Ecuador and Qatar in recent years.
With Angola's exit, OPEC's membership dwindles to 12 countries, while the broader OPEC+ alliance, which includes non-OPEC members, shrinks to 10. Saudi Arabia and Russia continue to lead OPEC and OPEC+, respectively, overseeing a combined production capacity of roughly 27 million B/D, representing approximately 27% of global oil supply.
Angola's post-OPEC focus lies in attracting foreign investment to its burgeoning fossil fuel sector. The country has implemented a series of initiatives, including licensing rounds and investor roadshows, specifically targeting small and medium-sized enterprises. As of November 2023, these efforts have yielded promising results, with 22 companies submitting bids for 12 onshore exploration blocks. Angola's ultimate objective is to regain its peak production of 1.8 million B/D, solidifying its position as a major player in the global oil market.
