Angola has found itself with a dwindling amount of crude to sell as more of its oil flows to China for debt repayment, leaving little revenue for anything from oil sector development to health care in one of Africa’s largest oil exporting nations.
Following a trend also seen in Iraq, Kazakhstan, Russia and Venezuela, Angola has tied up more of its output in pre-financed deals to bridge a drop in income due to the 70 per cent fall in oil prices in the past 18 months.
The price slump means the Western oil majors which manage the fields and platforms that help Angola export 1.8 million barrels per day are also taking more oil in return for their investment and services.
Countries with oil often use it as collateral for loans, and during a previous oil price collapse, in 2008, the process helped to tide many over until better times. But this time most experts say the rout will continue until at least 2017. Read more