Angola is Africa’s third largest oil producer behind Nigeria and Libya and, in January 2007, became the 12th member of the Organization of Petroleum Exporting Countries (OPEC). According to the 2008 BP Statistical Energy Survey, Angola had proved oil reserves of 9.035 billion barrels at the end of 2007 or 0.72 % of the world's reserves. Angola exports more than 90% of its crude oil primarily to China and the US. Angola's oil and oil derivatives industry accounts for 91.92% of total exports. Petroleum and petroleum products generated nearly $9.7 billion in State revenues in 2004. According to the 2008 BP Statistical Energy Survey, Angola produced an average of 1723 thousand barrels of crude oil per day in 2007, 2.15% of the world total and a change of 20.7 % compared to 2006. Angola is a key player in Africa's oil industry as both a major producer and exporter. Offshore Angola is recognised as a world-class area for oil exploration and production. Angola produces crude oils that have an API gravity ranging from 32 degrees to 39.5 degrees and a sulphur content of 1.12% to 0.14%. Angola currently flares the majority of its natural gas but plans are underway to convert natural gas into liquefied natural gas (LNG).
Angola's economy is highly dependent on the oil sector, which accounts for 40% of GDP and 80% of government revenues. Sonangol was established in 1976 and manages all fuel production and distribution in Angola.
The majority of the country's crude oil is produced offshore in Block Zero, located in the northern Cabinda province. Crude reserves also are located onshore around the city of Soyo, offshore in the Kwanza Basin north of Luanda, and offshore of the northern coast.
Significant discoveries have been made in Blocks 14, 15, 17 and 18 since the mid 1990’s. Companies are focussing on ways to reduce the costs and improve the cost-efficiency of producing from the high risk deep-water areas.
The top foreign oil companies operating in Angola are US-based ChevronTexaco and ExxonMobil, France’s Total, UK ’s BP, UK /Dutch Shell, and Italian Agip/Eni Oil Company.
