KEY POINTS
- ExxonMobil has extended the lease and operation of the Mondo and Saxi Batuque FPSOs off Angola until 2032.
- SBM Offshore will carry out life extension and refurbishment work on the vessels from 2026.
- The FPSOs will continue producing on Block 15, a key offshore asset involving ExxonMobil, Equinor, Sonangol and Azule.
ExxonMobil has agreed to extend the lease and operating contracts for two floating production storage and offloading vessels operated by SBM Offshore off the coast of Angola, securing their deployment well into the next decade as the US oil major maintains output from one of its core African assets.
The Dutch offshore engineering group said it had signed the extensions for the Mondo and Saxi Batuque FPSOs with Esso Exploration Angola, an ExxonMobil affiliate. The deal keeps ownership and operational responsibility with SBM Offshore until 2032, providing long term visibility for the assets and reinforcing Angola’s position in the company’s offshore portfolio.
Under the revised contracts, SBM Offshore will carry out a series of life extension works designed to ensure the vessels remain operationally sound. These activities will include equipment replacement and refurbishment programmes, with work expected to begin in 2026.
Both FPSOs are deployed on Block 15 offshore Angola, which is operated by Esso Exploration Angola. The wider contractor group includes Azule Angola Limited, Azule Angola BV, Equinor and Angola’s state oil company Sonangol, reflecting the international make up of one of the country’s most established producing blocks.
Life extension work to start in 2026 as Block 15 production continues
SBM Offshore said the contract extensions underline its role in supporting the long term offshore energy strategy of the Block 15 partners. The company added that maintaining the assets will contribute to sustained production and economic activity in Angola, where offshore oil remains a critical pillar of the national economy.
The Mondo FPSO has been in service since December 2007, initially under a 15 year lease agreement with ExxonMobil. Saxi Batuque followed soon after, achieving first oil in August 2008. Both units form part of the Kizomba C development, one of several large scale projects that helped establish Angola as a leading deepwater producer in sub Saharan Africa.
For ExxonMobil, the decision to extend the leases signals confidence in the continued viability of the fields tied to the FPSOs, even as the global energy industry navigates price volatility and growing pressure to transition towards lower carbon sources. Rather than investing in replacement vessels, the operator has opted to extend the life of existing infrastructure, a strategy increasingly favoured in mature offshore basins.
The agreement also highlights the enduring demand for specialised FPSO operators such as SBM Offshore, whose business model relies on long term lease contracts that can stretch over decades. By securing extensions on ageing but productive assets, the company locks in predictable revenues while spreading capital expenditure over a longer period.
Angola has in recent years sought to attract fresh investment into its upstream sector through fiscal incentives and regulatory reforms, aiming to offset natural decline from mature fields. The continued operation of Block 15, supported by infrastructure upgrades, fits into that broader effort to sustain output while new projects are developed.
