Overview
ExxonMobil is one of the major international oil companies operating in Angola, with its principal asset being the operatorship of Block 15, one of the country’s most productive deepwater concessions. Located in the Lower Congo Basin approximately 350 kilometers northwest of Luanda, Block 15 has been a cornerstone of Angola’s deepwater oil production since the early 2000s and remains a significant contributor to the country’s total output of approximately 1.03 million barrels per day.
Operational Portfolio
| Asset | Role | Details |
|---|---|---|
| Block 15 | Operator | Deepwater; Kizomba A, B, and C FPSO developments |
| Other interests | Non-operating | Participation in additional Angolan blocks |
Block 15’s production comes primarily from the Kizomba complex — a series of large-scale deepwater developments utilizing Floating Production, Storage and Offloading (FPSO) vessels:
- Kizomba A: One of the world’s largest FPSOs when commissioned, producing from the Hungo and Chocalho fields
- Kizomba B: Processing output from the Kissanje and Dikanza fields
- Kizomba C: Mundo and Saxi fields, utilizing a converted tanker FPSO
These facilities represent billions of dollars of cumulative capital investment and decades of reservoir development, making Block 15 one of the most capital-intensive and technically sophisticated deepwater operations in sub-Saharan Africa.
Production Profile
Block 15’s production peaked in the late 2000s and has been on a managed decline trajectory, as is typical for mature deepwater developments. ExxonMobil has pursued infill drilling, water injection, and other enhanced recovery techniques to slow the decline rate and maximize ultimate recovery. The block’s production decline is one of the factors contributing to Angola’s overall production challenge, as the country seeks to offset natural decline in mature fields with new developments from operators like TotalEnergies and ENI.
Economic Contribution
ExxonMobil’s Angolan operations generate significant fiscal revenue for the government:
- Production sharing: Under the Block 15 production-sharing agreement, Sonangol receives a share of production that varies with cumulative output and oil prices
- Petroleum income tax: ExxonMobil pays corporate taxes on its Angolan petroleum income
- Signature bonuses and fees: Concession-related payments at key contractual milestones
With oil accounting for 50-60% of government revenue and over 90% of exports, ExxonMobil’s Block 15 production is a material line item in Angola’s fiscal projections. The block’s output feeds into the BNA’s FX reserve calculations ($15.3 billion) and influences the central bank’s capacity to support the kwanza (USD/AOA at 914.60).
Local Content
ExxonMobil complies with Angola’s Angolanização requirements, including workforce nationalization targets, training programmes for Angolan engineers and technicians, and preferential procurement from Angolan-owned suppliers. The company has invested in educational partnerships and vocational training in Angolan provinces.
Capital Markets Relevance
For investors in Angolan sovereign debt, ExxonMobil’s production trajectory on Block 15 is a key input for medium-term fiscal modeling:
- Revenue projections: Block 15 decline rates and ExxonMobil’s capital expenditure decisions affect the government’s petroleum revenue forecasts
- Debt sustainability: With debt-to-GDP at 59.9%, sustained oil production from blocks like Block 15 is essential for maintaining the sovereign’s debt-servicing capacity
- Sovereign ratings: Ratings agencies (S&P B- / Moody’s B3 / Fitch B-) incorporate production outlook into their Angola assessments
Investor Considerations
Investors should monitor ExxonMobil’s global portfolio decisions and Angola-specific capital allocation. The company’s willingness to invest in extending Block 15’s production life versus redirecting capital to other geographies is an important signal. With Brent crude at approximately $74.50/bbl and Angola free from OPEC quotas since January 2024, production decisions are commercially driven. ExxonMobil’s Angola operations remain profitable at current price levels, but the company’s long-term commitment depends on fiscal terms, regulatory stability, and competitive returns relative to its global opportunity set.