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Chevron: Production started at shared African oil field

Chevron says start of oil production in field straddling the borders of the Congo and Angola could serve as a model in a region prone to territorial disputes. Image courtesy of Chevron. SAN RAMON, Calif., Nov. 3 (UPI) — Chevron said the development of oil reserves straddling the maritime border of the Republics of Congo and Angola could serve as a model for Africa. Chevron’s subsidiary in the region announced it started oil and gas production from the Lianzi field in a unified offshore economic zone straddling the borders of Congo and Angola. The project is the first in the region to start operations for Chevron and the first cross-border development in Africa. "As the first offshore energy development spanning national boundaries in the Central Africa region, Lianzi represents a unique cooperative approach to share offshore resources and may serve as a model for the development of similar cross-border […]

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Angola: Why Luanda’s Residents Are Asking – Where Did All the Oil Riches Go?

A few years ago, Luanda, the capital of Angola, was on every ambitious investor’s lips . With large infrastructure and housing projects rapidly changing its appearance, the city seemed to be leaving behind the country’s 27-year civil war. But hopes for renewal are slowly dissipating as the price of the commodity on which Angola’s future was being constructed – oil – steadily declines. Angola is Africa’s second-largest oil producer. It is one of the countries that have been hardest hit by the fall in oil prices. The oil crash forced Angola to slash its 2015 budget by US$17 billion (a 25% reduction ). Construction companies are having difficulties paying their workers, and the Angolan central bank has devalued the currency , the kwanza. Construction threatens to screech to a halt. The fantasy built on oil is crumbling, showing that its benefits were barely felt outside privileged sites of elite […]

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China returns to play larger role in Angolan November crude program

China has returned to be the main buyer for Angola’s November crude program, data from Platts shows, contrasting with the previous trading cycle, when more barrels headed to European refineries and the US. "Asia took more and Europe and the US took less in November," an Angolan crude trader said. "It’s a role reversal from the previous month." Angolan crude is heavily dependent on China, with 40%-60% of Angolan crude exports typically going there every month. Unipec, the trading arm of Chinese state-owned Sinopec, is by far the largest buyer of Angolan crude, often buying 35%-40% of the monthly export program. Article continues below… Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily futures summary Weekly API statistics, and much more However, during […]

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Angolan Government Cuts Spending by 50% as Oil Revenue Plunges

An oil tanker waiting in a queue of traffic outside the Port of Luanda in Luanda, Angola. The government of Angola, sub-Saharan Africa’s second-largest crude producer, cut spending by half this year following a plunge in oil prices, Vice President Manuel Vicente said. Public investment was reduced by 53 percent, Vicente told lawmakers in a state-of-the-nation address on Thursday in the capital, Luanda. He delivered the speech in the absence of President Jose Eduardo dos Santos, 73, who was “indisposed,” according to parliamentary Speaker Fernando da Piedade Dias dos Santos. Oil accounts for about two-thirds of fiscal revenue in Angola, putting the nation at risk after crude prices more than halved since June last year. The central bank devalued the currency twice this year and raised the benchmark interest rate four times in response, while the government has sought funding from the World Bank and China to help cushion […]

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Angola to Ship Most Crude in Four Years to Meet Asian Demand

Angola will export the most crude in almost four years in October as the OPEC member satisfies Asian demand and offsets diminished revenue from lower oil prices. Africa’s second-largest producer plans to ship 1.83 million barrels a day in October, the most since November 2011, according to a preliminary loading program obtained by Bloomberg. This compares with 1.77 million barrels a day in September. Angola slashed its budget by a quarter in response to the slump in crude prices, which have lost more than 50 percent in the past year. The African nation’s bid to recapture revenues is supported by demand in China, the world’s second-biggest oil-consumer, which imported near-record levels of crude in July. “Angola continues to profit mainly from Chinese demand, in addition to some demand from India and Indonesia,” said Ehsan Ul-Haq, an analyst at KBC Economics in London. The single biggest increase will be in […]

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Angola’s Credit Outlook Cut to Negative by S&P on Oil Price Drop

Angola’s credit-rating outlook was cut to negative by Standard & Poor’s, which predicted the country’s fiscal deficit will widen in the face of lower oil prices. S&P affirmed Angola’s B+ rating, four steps below investment grade, the company said in a statement on Friday. “The negative outlook indicates that we could lower our long-term rating on Angola if the country’s external or fiscal positions continue to deteriorate over the next year,” S&P said. Angola, Africa’s largest crude producer after Nigeria, relies on the fuel to generate about 70 percent of taxes and 95 percent of export income. As the price of oil plunged more than 50 percent in the past 12 months, the government slashed this year’s budget by a quarter, cut fuel subsidies and froze hiring. Government spending accounted for more than a third of Angola’s $129 billion gross domestic product in 2014.

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