Angola’s upstream capex nosedived with the oil price, so output could follow suit from 2019, but gas offers a budgetary solution for the export-dependent country if it can offer acceptable terms.

An estimated $67bn was cut or deferred from Angola’s upstream capital expenditure in the 2015-20 period, relative to what was expected in late 2014, according to a report by global consultancy Wood Mackenzie last month. These were primarily in deep and ultra-deepwater oil projects.

Of the countries in sub-Saharan Africa, Angola was the most affected by the oil price shock. Moreover, that loss of investment will impact its future oil production post-2019 that will impact oil export revenues in a country reliant on these for public spending.The government in Luanda and its state-owned oil producer Sonangol are taking steps to address these concerns. (source: NGW Magazine)