Angola risks losing investment from foreign oil companies as costly government regulations and low world prices make the country, vying to be Africa’s largest producer, less attractive to operate in, an industry executive said.
A series of measures introduced by Angola’s government in recent years has pushed production costs up as much as $500 million annually, said Jean-Michel Lavergne, general manager for Total E&P Angola, the country’s biggest driller.
Oil companies want talks with the Angolan government to press home the threat posed by regulatory costs, Lavergne told reporters on Friday at a monthly business forum in Luanda.
With crude oil prices below $60 a barrel, “if there is no significant reduction in costs, everything will stop,” Lavergne said. Angola’s oil industry “will disappear,” he added.
Brazil Energy Insight 
Leave a comment