Information service of the Pontifical Mission Societies since 1927
Luanda (Agenzia Fides) – While the price of unrefined oil rising to over 145 dollars a barrel, Angola has announced a plan to increase its own oil production over the next 5 years. “We will invest 100 billion dollars in 5 years,” said Manuel Vicente, President of the National Fuel Company Senagol, at the 19th World Petroleum Congress taking place in Madrid. Vicente also mentioned that over the next 10 years, another 100 oil wells will be created in order to replace the older ones that will soon run dry.
Angola, with 1.9 million barrels’ worth a day, is Africa’s number 1 oil producer, followed by Nigeria. And with new investments, another 100,000 barrels per day will be added on, leading to a daily production of 2 million barrels.
Angola has also taken the mediation role between OPEC (Organization of the Petroleum Exporting Countries) and the purchasing countries. The Petroleum Department has stated that “Angola will continue making all necessary effort in stabilizing the prices of unrefined oil, without neglecting its commitment with OPEC.”
Angola’s passing to the top of the list as petroleum producer, ahead of Nigeria, is due to political reasons. The situation in Angola has been stabilizing itself since 2002, the year an over two decades-long civil war came to an end. Nigeria, however, is having to face instability in the area of the Niger Delta, where the majority of the oil reserves are located. According to analysts, Nigeria has a potential production superior to that of Angola, however until the conditions stabilize, the international oil companies will not make the necessary investments in order to exploit the still untouched reserves.
The majority of the “untouched” oil in Angola and Nigeria is found in off-shore oilfields, often located in high seas, which require costly equipment in order to be reached and extracted. The recent guerrilla attacks of the MEND (Movement for the Emancipation of the Niger Delta) on an oil reserve at over 120 kilometers from the Nigerian Coast, has created alarm among workers, as it shows that not even the sights farthest from the coast are free from possible attacks of guerrillas and common criminals. It is estimated that Nigeria loses about 84 million dollars a day from guerrilla activity. The downfall of Nigerian production also creates tensions among the speculative markets of unrefined oil, contributing to a rise in the price.
The MEND has intensified its activity since a high-ranking member, Henry Okah, was extradited from Angola to Nigeria. (LM) (Agenzia Fides 3/7/2008)
