The
high cost of producing the barrel of oil and the steady decline in price on the
international market is leading two of the world's largest oil companies,
Chevron and Exxon to rethink their business strategy in Angola. The possibility
of abandoning activity in this country is not out of the question.
Sonangol
(the Angolan state oil company) led by Isabel dos Santos faces serious cash-flow
difficulties and has for some time been unable to monitor with foreign
investments. In addition to requiring Chevron to reduce considerably its budget
(40% this year), it often fails to respond to proposed new projects, such as
Exxon intension to develop a drilling project of 40 to 60 new oil wells in deep
waters.
This skewed
policy in which nothing is decided is attributed to Isabel dos Santos, accused
by many of not being able to manage Sonangol and only being interested in
personal enrichment.
Impatience
has already taken over both Chevron and Exxon. Another good example of careless
management is BP - itself had planned an investment of $ 800 million in Angola
- after a four months deadlock the proposal succumbed.
With
the reduction of investments in this sector, production will naturally tend to
fall and the national budget will suffer even more harmful consequences than
today.
The
Angolan State can’t neglect this created scenario, as these and other companies
will certainly change their strategy and invest in more attractive markets.
João
Dias - Senior Consultant
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