Angola’s oil sector faced a downturn in June 2024, with production reaching 34.8 million barrels but revenue only totaling 714.38 billion kwanzas ($751 million). This marked a 20% decrease from the previous month, attributed to a drop in the price per barrel to $81.30 due to global market trends.
The National Agency for Petroleum, Gas, and Biofuels reported a daily production of 1.162 million barrels, exceeding expectations. However, the oil concessionaire’s income shrank by 26.15% to 491.13 billion kwanzas, and taxes from production slid by 22.54% to 27.46 billion kwanzas.
Amidst this decline, maintenance was performed on 32 oil wells, with 82.965 million cubic feet of associated gas produced daily for the Angola LNG plant. This plant plays a vital role in converting natural gas to liquefied natural gas for export.
Angola heavily relies on oil revenue to fund public sector initiatives, making this setback significant. The situation underscores the importance of economic diversification to ensure stability and growth. This volatility in oil income serves as a warning of the risks associated with single-commodity economies and the need for strategic economic planning.
