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VAALCO completes FSO installation and field reconfiguration offshore Gabon

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VAALCO Energy delivered First Oil to the Teli floating, storage, and offloading (FSO) vessel at its Etame Field offshore Gabon on October 18, the company has revealed. The installation of the FSO had been ongoing for several months to replace the previous Petróleo Nautipa FPSO vessel operated by BW Offshore, whose contract expired in September this year.

Etame is VAALCO Energy’s flagship project with a net production to the company of some 10,000 barrels of oil per day (bopd) on average. A recent extension of the production sharing contract (PSC) until 2028 paved the way for the reconfiguration of the field and a new drilling campaign.

In August 2021, VAALCO Energy signed a binding letter of intent with World Carrier Offshore Services Corp. to provide and operate a FSO unit for up to eight years with additional option periods available. The agreement eventually led to the execution of a Bareboat Contract and Operating Agreement with Greece’s World Carrier Corp. to provide and operate the new Teli FSO. In doing so, VAALCO Energy expects to reduce storage and offloading costs almost 50%, lower total operating costs by approximately 17% to 20% through 2030, and increase effective capacity for storage by over 50%.

In total, and once the field is reconfigured, the agreement with World Carrier is expected to lead to annual operating expense savings of around $20 to $25m over the life of the new agreement, according to VAALCO.

Meanwhile the company recently extended its ongoing drilling campaign on the block from four to six wells. The Etame 8HST, Avouma 3H-ST, South Tchibala 1HB-ST, and ETBNM 2H—ST have already been drilled this year, tracking data from the Hawilti+ research terminal shows.

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Somalia: Federal Government approves Coastline Exploration’s Production Sharing Agreements

Coastline Exploration has announced receipt of final authorization to proceed with its exploration programme in Somalia after paying a $7m signature bonus to the Somali Central Bank. The oil & gas independent had announced last February that it had signed seven Production Sharing Agreements (PSAs) for deep-water blocks offshore Somalia. “We want the first exploration well to start as soon as possible,” Somali President Hassan Sheikh Mohamud said in a statement. Based out of Houston, Coastline Exploration says it has invested over $50m in Somalia and has been engaged since 2018 on negotiating its offshore PSAs.

Nigeria: Petralon 54 steps up engagement with Dawes Island communities

Petralon 54 Ltd has announced that it recently held a meeting with its host and impacted communities around the Dawes Island Field south of Port Harcourt in the Niger Delta. The company officially presented its Petroleum Prospecting License No. 259 (PPL 259) to the Royal Fathers and the people ahead of starting sustained commercial production later this year. “The initiative was aimed at building mutual understanding between our organisation and the Ogoloma, Okochiri and Koniju communities in Okrika Local Government Area, Rivers State,” the company said today. Petralon 54 Ltd is a subsidiary of Petralon Energy, who was awarded PPL 259 in mid-2022 by the Federal Government of Nigeria, giving it operatorship of the Dawes Island Field. The group also holds an indirect minority interest in Prime Oil & Gas, which in turns entitles it to a net reflective production of some 3,000 barrels of oil equivalent per day (boepd) from the Agbami, Akpo, and Egina deep-water fields.