200805171339 | Angola now Africa's largest oil producer

Angola now Africa's largest oil producer

Angola is since last month Africa's largest oil producer surpassing Nigeria whose output was sharply cut by unrest in the oil-rich Niger Delta region. The announcement was made on Thursday by the Organization of the Petroleum Exporting Countries (OPEC).

The Southern African country, one of OPEC's newest members, claimed the top spot for the first time pumping 1.873 million barrels per day in April, 55,000 bpd more than West African country Nigeria.

While Angola has gradually increased its production with new offshore oilfields, Nigeria has been plagued by persistent supply disruptions.

Production in Nigeria, Africa's top producer since 1978 on an annual basis, tumbled by as much as 1.36 million bpd in late April or more than 40 percent of its installed output capacity.

Militant groups have been on a violent campaign in the oil-producing Niger Delta since 2006 to press for greater local control over oil revenues and development for the impoverished region, where they say five decades of oil extraction have polluted the land and water, and enriched corrupt politicians.

Most analysts believe Nigeria will retake the top position this month as much of its shut-in production has been restored.
Some 800,000 bpd has since come back online after Exxon Mobil and its union workers reached an agreement to end an eight-day strike.

Royal Dutch Shell also said on Tuesday it has brought back some of its shut-in production, repairing two of four Bonny Light oil facilities damaged by militant attacks.

Meanwhile Exxon Mobil is scheduled to load its first shipment of Angola's Saxi crude blend in July, traders said on Thursday, as production in the West African countries continues to rise.

Reuters reported Thursday that Angolan export programmes showed the first cargo of Saxi crude will be loaded on July 4-5, traders said. A total of three 950,000-barrel cargoes were scheduled to load in July. Angola's Hungo crude was expected to load nine cargoes, while Kissanje has eight.

Traders reported four Mondo shipments, while Xikobma had no July programme.
India's largest state-owned Indian Oil Corp. issued a tender to buy July-loading sweet crude on top of 8.6 million barrels booked for the month, a trader said.

Grade offers in the tenders are due on Tuesday and price bids will remain valid until Thursday.
in Nigeria, benchmark Qua Iboe crude was last talked at around dated plus $3.85/$3.90.