VAALCO strengthens its presence in Africa with the acquisition of the CI-705 block in Côte d’Ivoire and increased production in Gabon

VAALCO continues its expansion in West Africa with the acquisition of a 70% stake in the offshore CI-705 block in Côte d'Ivoire and an ambitious plan to double its crude production in Gabon by 2026.

Share:

VAALCO Energy, the American oil company, continues to strengthen its presence in Africa. On March 3, 2025, the company announced the acquisition of a 70% stake in the offshore CI-705 block, located approximately 70 km west of the CI-40 block in Côte d’Ivoire. This acquisition follows the purchase of the offshore Baobab field in 2024, reinforcing VAALCO’s strategy to establish a stronger foothold in West Africa. The transaction cost VAALCO USD 3 million, and the company is partnering with Ivory Coast Exploration Oil & Gas SAS and PETROCI, the Ivorian national oil company, to operate this asset as the lead operator.

The strategic potential of the CI-705 block

The CI-705 block is located in the Tano basin, an area rich in recent discoveries. Situated 60 km from the Calao discovery made by Eni, this offshore block presents an attractive geological potential for VAALCO. The maximum water depth in the area reaches 2,500 meters, and three wells have already been drilled within the perimeter. The American company plans to undertake a detailed geological analysis to assess the “overall prospectivity of the block,” evaluating its potential for both oil and natural gas.

VAALCO’s CEO, George Maxwell, expressed confidence in the potential of this acquisition. “We believe the CI-705 block is strategically located within a proven petroleum system, close to existing infrastructure with access to a rapidly growing domestic market,” he said. The upcoming geological analyses could further strengthen VAALCO’s strategic position in this region.

Increased production in Gabon

In addition to its development in Côte d’Ivoire, VAALCO is implementing an ambitious plan to double its crude production in Gabon. In July 2024, the company announced an investment of USD 300 million to increase its oil production to 30,000 barrels per day (bpd) by early 2026, compared to the current production of around 15,000 bpd. This plan involves a new drilling campaign scheduled for 2025, which includes 5 to 10 new wells. VAALCO has allocated a budget of USD 200 million for these operations, aiming to strengthen its development of the Etame licence, one of the country’s largest.

Logistical challenges to overcome

However, VAALCO must overcome several challenges to successfully execute its plans. The company faces administrative and logistical obstacles, particularly in obtaining permits and securing equipment. Despite these challenges, VAALCO is relying on increased collaboration with the Gabonese authorities to expedite procedures and implement the necessary solutions to meet its objectives.

The company is focusing on optimising its infrastructure and adopting new technologies to enhance operational efficiency and ensure the profitability of its investments in the region.

  • Populaires ​
Renewable energy: access improving, but financing still insufficient for Africa
Enbridge Gas Ohio challenges tariff ruling cutting its revenues by $30mn
Natural hydrogen: France on the verge of redefining its national and European energy strategy
Iberdrola increases supplementary dividend by 16.5% to €0.409 per share
Iberdrola launches metocean studies for Australian offshore wind farm
Mauritania: Sonatrach and SMH launch strategic partnership in downstream oil sector
Facing an under-equipped downstream sector, Mauritania partners with Sonatrach to create a joint venture aiming to structure petroleum products distribution and reduce import dependency, without yet disclosing specific investments.
Dalinar Energy wins recommendation to acquire Citgo with $7.38bn bid
Dalinar Energy, a subsidiary of Gold Reserve, receives official recommendation from a US court to acquire PDV Holdings, the parent company of refiner Citgo Petroleum, with a $7.38bn bid, despite a higher competing offer from Vitol.
Global Oil Exploration Investments Decline, a First Since 2020
Oil companies may reduce their exploration and production budgets in 2025, driven by geopolitical tensions and financial caution, according to a new report by U.S. banking group JP Morgan.
US oil inventories unexpectedly rise by 3.8 million barrels
Commercial oil inventories in the United States rose unexpectedly last week, mainly driven by a sharp decline in exports and a significant increase in imports, according to the US Energy Information Administration.
TotalEnergies acquires 25% stake in Block 53 in Suriname and strengthens its offshore presence
TotalEnergies acquires a 25% stake in Block 53 offshore Suriname, joining APA and Petronas after an agreement with Moeve, thereby consolidating its expansion strategy in the region.
Prax Group files for insolvency in the UK after losses at Lindsey refinery
British company Prax Group has filed for insolvency, putting hundreds of jobs at its Lindsey oil site at risk, according to Sky News.
Orlen ends Russian oil purchases for Czech refinery after contract expiry
Orlen announces the definitive halt of its Russian oil purchases for the Czech Republic, marking the end of deliveries by Rosneft following the contract expiry, amid evolving logistics and diversification of regional supply sources.
Adura becomes the leading independent oil and gas producer in the North Sea
Equinor and Shell launch Adura, a new joint venture consolidating their main offshore assets in the United Kingdom, aiming to secure energy supply with an expected production of over 140,000 barrels of oil equivalent per day.
Equinor discovers up to 15 mn barrels of oil at Johan Castberg in the Barents Sea
Equinor announces a new oil discovery estimated at between 9 and 15 mn barrels at the Johan Castberg field in the Barents Sea, strengthening the reserve potential in Norway's northern region.
Sierra Leone launches extensive offshore oil exploration with 60 potential blocks
Sierra Leone relaunches an ambitious offshore exploration campaign, using a 3D seismic survey to evaluate up to 60 potential oil blocks before opening a new licensing round as early as next October.
Zambia restructures petroleum logistics to stabilise energy supply
Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.
Grangemouth Closure: UK Oil Stocks at Highest Level in Three Years
The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
Mexco Energy reports 27% increase in annual profit
Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.
S&P downgrades Ecopetrol to BB, Moody’s maintains Ba1 rating
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
Shell officially rules out any takeover offer for rival BP
Shell group publicly clarifies it is neither considering discussions nor approaches for a potential takeover of its British rival BP, putting an end to recent media speculation about a possible merger between the two oil giants.
Chinese independent refiners poised to increase fuel oil imports
The anticipated increase in the tax deduction rate may encourage independent refineries in Shandong to restart fuel oil imports, compensating for limited crude oil import quotas.
Petro-Victory launches fully-funded drilling campaign in Brazil
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
Port of Corpus Christi expands capacity for large oil tankers
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
BP Prudhoe Bay Royalty Trust puts Prudhoe Bay royalty up for sale
BP Prudhoe Bay Royalty Trust is offering its interest in Prudhoe Bay, North America’s largest oil field, as part of its planned dissolution, assisted by RedOaks Energy Advisors for this strategic asset transaction.
CNOOC partners with KazMunayGas to explore the Zhylyoi subsoil area
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS