OREANDA-NEWS. Angolan state-owned oil firm Sonangol said it remained a "stable and operationally strong company" despite sustained lower oil prices, which has put pressure on the firm's finances and growing competition from rival suppliers in its main markets of China and India.

The fall in oil prices has cut Sonangol's revenues from its share of upstream oil production and crude sales.

The Angolan government has also been forced to cut expenditure because of the drop in international oil prices since June last year.

But Sonangol said it had sufficient working capital to meet its "immediate and short-term obligations". Sonangol's plans to spend an estimated $6.7bn this year in capital expenditure also remained in place. It made an operating profit of $1.65bn in 2014.

The firm's net debt stands at $13.7bn. Angola was also producing 100,000 b/d more than this time last year, Sonangol said. Angola produced 1.77mn b/d in June this year, according to Argus estimates. Angola is China's leading crude supplier.

Sonangol said it "prioritises the maintenance of Sonangol's share in the markets of China and India, where competition is getting stronger, especially of companies from the neighbouring countries".