(Ecofin Agency) - Poorer members of the Organization of Petroleum Exporting Countries (OPEC) which obtained loans to be paid back with oil, are currently conveying three times more than expected so as to respect repayment schedules as the prices of crude oil has dropped, Reuters reports.

Due to this, the finances of countries like Angola, Nigeria, Venezuela and Iraq have been weakened since the loan were obtained when the prices of crude oil were higher, and has also created a division inside OPEC.

Poorer oil producing countries are demanding for a production cut to bolster prices ahead of the meeting in Vienna next month, but the wealthier members such as Saudi Arabia are refusing to make any effort in spite of the price declining by 60% for the past two years.

Countries like Angola obtained a total of $25 billion from China in 2010 which includes the $5 billion in December 2015. This has made Sonangol send out nearly all its total oil production for repayment this year.

Angola, Nigeria, Iraq and Venezuela are at present, still owing between $30 billion and $50 billion worth of oil.

As at the time the prices of oil in the global market was around $120 per barrel, paying back the $50 billion to some extent requires more than 1 million bopd of exports but with the prices rising and falling, the payment will involve exports of more than 3 million bopd.

According to National Oil Companies and Industry sources, Nigeria and Iraq owe billions of dollars to be repaid in oil to companies like Shell and Exxon Mobil.

This year, Nigeria has debts of $3 billion in oil to major oil companies which have assisted the country in financing its portion of combined oil field development.

Iraq is making efforts to negotiate new contracts for investment and development of new oil fields with companies such as Exxon, Shell and Lukoil. The country was expected to pay the companies $23 billion this year with oil but it is currently saying that it has enough crude to only pay $9 billion.

While Saudi Arabia’s income from its oil sales went into state reserves, the poorer oil producing countries saw a big part of incomes generated from oil swallowed by debts, resulting in lack of fund to invest in infrastructure and field development.

Due to this, Nigeria and Venezuela are currently witnessing a sharp fall in production as Saudi Arabia is planning to boost supplies.

Anita Fatunji