June 21, 2022 12:56 GMT
Nigeria and Angola won’t meet OPEC output quotas for at least another year according to a special report on Africa by the IEA out this week.
- The two African nations are struggling to meet quotas because of persistent underinvestment and maintenance issues.
- The region's largest producer, Nigeria, has seen production plunge to its lowest level in more than 30 years to 1.23 million b/d in May according to a Platts survey.
- Angola, meanwhile, Africa's third biggest producer, has also seen output plummet from close to 1.8 million b/d five years ago to 1.16 million b/d in May also based on a Platts survey.
- "The sharp fall in oil demand and prices at the start of the pandemic led to a near 20% drop in oil production in Africa," the IEA said, which led to diminishing investment to be prepared for the current price spike and demand for crude.
- "Many international oil companies, which make up a large part of African oil and gas production, have become increasingly reticent to make large‐scale investments due to the lack of regulatory clarity and uncertainty over future global demand," the IEA added.