Sonangol vows to reach target of 2 million oil barrels per day

Angola is determined to reach the goal of producing 2 million oil barrels per day between 2015 and 2016, said in Luanda Paulino Jerónimo, exploration manager at Angolan state oil company Sonangol.

Mr Jerónimo said the board of directors had set the production target to be achieved between 2015 and 2016, adding that it should be maintained for at least five years, local newspaper Jornal de Angola reports.

Oil prices have fallen over 40 percent since June. In that period, prices have slumped from US$115 a barrel to less than US$70. There are signs that prices could further fall as supply grows.

Mr Jerónimo, quoted by Jornal de Angola, said the drop in oil prices poses new challenges to the industry, including the need to optimise operations and cut costs.

Meanwhile, at the inauguration ceremony of a new floating platform for oil production, storage and offloading of French group Total SA, the firm’s Chief Executive Officer, Patrick Pouyanne, said the company would not change its planned investments for Angola.

Mr Pouyanne said the cost of the company’s operations in Angola were calculated base on a minimum oil price of US$30 a barrel, which makes it financially viable to continue with the planned investment despite the slump in oil prices.