Vaalco Energy is evaluating the use of a floating production, storage and offloading (FPSO) vessel for the deepwater Kossipo discovery offshore Ivory Coast. Concurrently, the company is scouting the market for a second redeployable FPSO for its Venus development in Equatorial Guinea. These projects represent significant growth initiatives alongside the company's core producing assets in Gabon and Egypt.

Kossipo Development in Ivory Coast

Vaalco recently increased its stake in the deepwater Kossipo discovery from 28% to 60% after operator Canadian Natural Resources (CNR) opted not to participate. The discovery, located in 1,500 metres of water in Block CI-40, holds an estimated 102 million barrels of oil equivalent in contingent proven and probable resources. Vaalco has secured the right to operate the field. While CNR's draft development plan proposed a subsea tie-back to the existing Baobab FPSO, Vaalco is reassessing this approach to avoid temporary production shutdowns at Baobab. The primary alternative is a standalone FPSO with subsea wells, likely involving a redeployed vessel. A development decision is targeted for late 2026, with first oil around 2030.

Venus Development in Equatorial Guinea

In parallel, Vaalco is seeking a redeployable FPSO for the smaller Venus discovery in shallow-water Block P, which holds about 25 million barrels of proven and probable reserves. The development concept shifted from extended-reach wells drilled from a platform to a scheme using vertical subsea wells tied back to an FPSO. This change improved reservoir sweep efficiency and confidence in hydrocarbon recovery. The base plan involves one water injector and two production wells, each expected to produce about 10,000 barrels per day over a five-to-seven year life, which is considered highly economic.

Other Assets and Financial Position

Vaalco's current production comes from assets in Gabon, Egypt, and Western Canada (the latter under a sales agreement). A near-term production boost is expected from the returning Baobab Ivorien FPSO in Ivory Coast. The company also holds a stake in the legacy Uge discovery offshore Nigeria but sees little prospect for its development due to reservoir compartmentalization and pending regulatory approvals. Financially, Vaalco has a strong balance sheet with no debt and access to significant credit facilities, which it plans to use to fund the Kossipo and Venus developments.