The irregularities in new block bids and excess of bureaucracy are behind the decline in oil production in Angola said Wednesday the Minister of Mineral Resources and Oil, Diamantino de Azevedo in the country’s capital, Luanda.
Diamantino de Azevedo, who presented the final results of the interministerial working group created by Presidential Order 307/17 of 21 December to update the readjustment model for the oil sector, stated that production for the current year is estimated at 1.5 million barrels of oil per day, compared to the 1.9 million barrels recorded in 2008.
The lack of incentive policies that allowed the development of marginal fields also constituted other determinants of the decline in oil production, which should be proposed by the national concessionaire, which did not happen in a timely manner.
According to Diamantino de Azevedo, who Wednesday announced the creation of a national oil and gas agency, the oil and gas industry in Angola is currently undergoing a significant phase of transformation.
To him, Oil production is in the process of maturation, and less mitigated, with an annual decline of 10-15% expected, leading to the reduction of the current 1.5 million barrels per day to 1 million barrels per day until 2023.
In this context, a working group coordinated by the Minister of Mineral and Petroleum Resources was created to respond to the problems in the sector.
One of the solutions found, according to the minister, is the creation of the national oil and gas agency, which will assume the role of national hydrocarbons concessionaire.