Angola to be Constrained by OPEC production quota in 2008

Angola to be Constrained by OPEC Production Quota in 2008

09-12-2007

Angola's Oil Minister Desiderio da Graca Verissimo e Costa said that his country wouldn't be constrained by an Organization of Petroleum Exporting Countries production quota this year but may have one in place in 2008.

Costa, speaking ahead of an OPEC policy meeting at which members are expected to approve a rise in quotas, said the issue of a limit for Angola, which became its 12th member at the beginning of this year, isn't on the agenda.

Angola is sub-Sahara Africa's second-largest oil producer after Nigeria, with oil production of around 1.6 million barrels a day and with ambitions to lift its oil output by one-fifth by next year, to 2 million barrels a day.

While the government is quickly boosting output at expensive offshore projects, Angolan officials have aired doubts about the timing of having an output quota.

A quota could crimp operations for oil giants like Chevron Corp. (CVX), Total S.A. (TOT), BP PLC (BP) and Exxon Mobil Corp. (XOM), which are investing billions in titanic structures off the coast of Angola. A recent string of discoveries promises even more opportunities for development in the country.