American state producing African oil (10)

I believe the answer is:

california

'american state' is the definition.
(California is an example)

'producing african oil' is the wordplay.
'producing' is an anagram indicator.
'african'+'oil'='africanoil'
'africanoil' is an anagram of 'CALIFORNIA'.

(Other definitions for california that I've seen before include "US state" , "The Golden State" .)

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