Angolan state oil company Sonangol has cut output by 78,000 barrels per day to (bpd) to 1.673 million bpd as part of an OPEC agreement to lower supply from Jan. 1.
The announcement by Sonangol follows a deal reached by OPEC members to reduce production by 1.2 million barrels a day from January in a bid to reverse a slump in global oil prices.
The deal comes into effect despite Angola’s dire economic straits caused by a slump in crude oil prices.
Angola is Africa’s largest oil producer—having recently overtaken Nigeria, whose production has dropped due to a resurgence of Niger Delta militancy.
The southern African nation is reeling from low oil prices, with oil comprising about 45 percent of its GDP and over 95 percent of its exports.
Economic growth slowed to about 1 per cent in 2016 driven by a sharp slowdown in the non-oil sector.
In June, the International Monetary Fund (IMF) said the Angolan economy continues to be severely affected by the oil price shock experienced in the last two years.
Its state run oil company Sonangol has been in the news lately following the controversial decision by president Eduardo dos Santos to appoint his daughter, Isabel dos Santos, to run the firm.