Angola’s crude output fell to a 17-year low of 1.073 million barrels per day in June, according to the Agência Nacional de Petróleo, Gás e Biocombustibles (ANPG). Because of technical and operational challenges at some sites, exacerbated by a lack of upstream investment and incentives, the OPEC member has been unable to control a steep decrease in its oil production during the last five years.

Recent output levels are still significantly below the country’s recent OPEC production cutting pledges. According to the data, Angola pumped 32,191,940 barrels (1,073,065 barrels per day) in June, down from 34,887,890 barrels (1,125,416 barrels per day) in May. Under the recent OPEC+ deal, Angola agreed to sustain output at 1.298 million b/d in June.

According to S&P Global Platts estimates, this reflects a drop of about 40% over the last five years, emphasising the magnitude of the decline.

In June, ANPG reported that eight units were drilling, compared to nine in May.

However, drilling and exploration work in the country began to pick up in 2021, after companies including Eni, BP, TotalEnergies, and ExxonMobil all resumed upstream work in the country.

There could be a minor rebound in production by the end of 2021 and into early 2022 due to the recent startup of TotalEnergies’ Zinia Phase 2 oil project in Block 17, along with some other recent discoveries.

Angola is expected to pump 1.1 million to 1.2 million barrels per day this year, according to S&P Global Platts Analytics.