As global oil markets continue to recover from COVID-19, the Angolan oil and gas industry has already achieved half of its targeted oil revenues, as set forth by the national state budget for 2021, according to official reports published by Angola’s Ministry of Finance.
Measured against a $39-barrel price, the national state budget anticipates oil revenues of 4.06 billion Kwanzas (approximately $6.19 million) in 2021. In the previous six months, the country has raised 2.4 billion Kwanzas (approximately $3.7 million) through the sale of 210.1 million barrels of oil, with an average barrel price of $68.48.
Globally, the price of oil is continuing to stabilize, reaching just over $70 per barrel (WTI) as of July 21 – an increase that will be pivotal for the local economies of oil-dependent countries like Angola.
Among other benefits, higher oil prices translate to new investment opportunities for the oil and gas industry. Current operators in Angola can leverage the opportunity to invest in new exploration and maximize existing production. Per the Angolan law for cost recovery and profit sharing through production sharing contracts, the oil price increase will also positively affect tax revenue.
On another note, projects such as the Cabinda, Soyo and Lobito refineries will enable Angola to become self-sufficient in refined petroleum products for domestic consumption, according to local specialists. Given its strategic location and targeted daily production capacity of processing 200,000 barrels per day, the Lobito refinery, in particular, will allow Angola to export petroleum by-products to neighboring countries at a competitive price and extend exports to Europe and Asian markets in the long run.