In Angola, Sonangol, has announced that its arrears to foreign oil companies had risen to $7.8 billion in 2015, an annual increase of 41%.

Covering unsettled investment and operational costs, Sonangol’s growing arrears problem is comes at a period of dropping revenues.

The company’s 2015 income dropped by 54% caused by cheap oil prices. Due to this, Sonangol said this year will be a tough year, with prearranged investment going under review.

“The results and the company's financial performance will remain under heavy pressure,” the company told The Oil and Gas Year.

Angola produced 1.78 million bopd in 2015, compared to the 6% increase in 2014. Regardless of the country’s financial difficulty, Angola held talks with the World Bank in January to procure finance for reforms as it plans an additional boost in oil production for 2016.

Anita Fatunji