Angola Leaving OPEC Opens the Way for Beijing to Up Investment in the Country’s Oil Sector

Angola is leaving the Organization of the Petroleum Exporting Countries, effective from Jan. 1, following a row with the producer group over the size of its output quota. Freedom from OPEC output constraints could therefore allow China to increase its role in the oil sector, which has struggled from years of underinvestment. The decision also follows an agreement signed between China and Angola this month on enhanced cooperation. “China stands out as a pivotal and proven partner,” Angola’s Foreign Minister Tete Antonio said during a visit to Beijing when the deal was signed. Angola, for which oil constitutes 90% of exports, is seeking to diversify its economy, but it also needs revenue. Antonio said Angola acknowledged the importance of technology, a skilled workforce and strategic partnerships that could help the country move on from oil and called for more Chinese investment particularly in the country’s coffee, batteries, and solar energy sectors.

REUTERS