Source: Word Oil
With a resource base of over 20 MMbbl of oil, Block P hosts the Venus discovery and an exploration acreage, operated by VAALCO Energy (60%), together with Equatorial Guinea's national oil company GEPetrol (20%) and Nigerian oil and gas company Atlas Petroleum International (20%).
VAALCO Energy is close to making a final investment decision on the offshore development, after which the company will move directly into the drilling campaign. The Venus conventional oil field is expected to start commercial production in 2026 and is forecast to reach peak production in 2028. Committed to maximizing Africa’s hydrocarbon potential, VAALCO Energy plans to double its crude oil production to over 50,000 barrels per day by 2027. The production increase is part of the company’s strategy to increase its production from maturing fields.
In another move aimed at boosting VAALCO Energy's crude oil resource development, the company signed an agreement in March 2024 to acquire Swedish offshore exploration company Svenska Petroleum Exploration.
The $66.5 million cash transaction includes the acquisition of Svenska's 27.39% interest in the deepwater producing Baobab field in Block CI-40 offshore Côte d'Ivoire.
Having been significantly de-risked through the drilling of 24 production wells and five injection wells and with a 20-year production history, the high-yield Baobab field is poised to serve as a significant upside opportunity for VAALCO Energy. As part of efforts to diversify its portfolio and boost production from its African assets, VAALCO Energy is planning a drydocking and upgrade of the Baobab FPSO unit in 2025, leading to significant production growth from the field’s planned 2026 drilling program.
In addition to Equatorial Guinea and Côte d'Ivoire, VAALCO Energy is considering locations for its next drilling campaign on the Etame block offshore Gabon, with operations set to begin in late 2024.
The company has so far mined 127 MMbbl from its Etame permit and is focused on ensuring the block continues to produce over the next decade.
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