Sonangol to raise production 20 percent

LUANDA, February 27, 2015 – National oil company Sonangol announced plans to increase oil production by 20 percent Thursday. The company plans to reach production of 200 million barrels per day by the beginning of 2016 and resume its LNG exports by the end of 2015.

Plunging oil prices coupled with mechanical issues and soaring costs took their toll on the state company, which saw its annual income fall 77 percent in 2014. LNG production fell by 29 percent.

“There will be no production cuts [in 2015]. The fields that are in production will continue to produce, the projects that are in progress will be completed and go into production on the planned dates,” chairman Francisco de Lemos José Maria said in a statement. The company plans to cut its budget by $4 billion this year.

Wednesday Sonangol announced it would offer 15 new oil blocks in the Congo and Namibe basins for auction during 2015. The company also said it expected to complete the concession process launched in 2014 for 10 onshore blocks in the Congo and Kwanza basins this year.

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