The Big Bet: Vaalco’s $3 Million Gamble on Côte d’Ivoire’s Offshore Riches

Houston-based energy powerhouse Vaalco Energy is making waves in the African oil and gas sector with a bold $3 million investment to secure a 70% stake in the CI-705 offshore block off the coast of Côte d’Ivoire. This strategic move not only positions Vaalco as the operator of the block but also grants it a 100% paying interest through a commercial carry arrangement with partners Ivory Coast Exploration Oil & Gas SAS and PETROCI.

Located in the prolific Tano Basin, the CI-705 block is a stone’s throw away from Vaalco’s existing CI-40 block, home to the Baobab and Kossipo oil fields, and Eni’s recent Calao discovery. With its proximity to established infrastructure and a proven petroleum system, the block is a tantalizing prospect for Vaalco’s expansion plans.

Why CI-705? A Treasure Trove of Oil and Gas Potential

The CI-705 block spans an impressive 2,300 square kilometers, with water depths ranging from zero to 2,500 meters. Despite its vast size, the block remains lightly explored, with only three wells drilled to date. Vaalco’s initial assessments suggest the presence of both oil and natural gas, making it a prime target for further exploration.

George Maxwell, Vaalco’s CEO, is optimistic about the block’s potential: “We believe CI-705 is favorably located in a proven petroleum system, with access to a growing domestic market and attractive upside potential. Our plan is to conduct a detailed geological analysis to mature our understanding of the block’s overall prospectivity.”

The company’s strategy includes seismic reprocessing, interpretation, and potentially drilling up to two exploration wells. This phased approach reflects Vaalco’s confidence in its ability to unlock value from the block, building on its track record of successful acquisitions and developments across Africa.

Vaalco’s African Ambitions: A Broader Vision for Growth

Vaalco’s investment in CI-705 is just one piece of a larger puzzle. The company is actively pursuing multiple hydrocarbon projects across Africa, including a 2025/2026 drilling program off the coast of Gabon, for which it has already secured Borr Drilling’s jack-up rig.

In addition, Vaalco recently announced plans for the refurbishment of a floating production, storage, and offloading (FPSO) vessel operated by Canadian Natural Resources International (CNRI) in Côte d’Ivoire. The vessel is set to undergo a revamp in the UAE, further underscoring Vaalco’s commitment to enhancing its operational capabilities.

Maxwell emphasized the company’s long-term vision: “We are excited about the major projects planned for 2025 and 2026, which are expected to deliver a step-change in organic growth across our portfolio. This is yet another opportunity to add value and extend Vaalco’s runway for the future.”

Keywords

Vaalco Energy, CI-705 block, Côte d’Ivoire, offshore oil and gas, Tano Basin, African energy sector, seismic exploration, hydrocarbon projects, George Maxwell, Borr Drilling, FPSO vessel

Excerpt

Houston’s Vaalco Energy is doubling down on Africa’s oil and gas potential with a $3 million investment in Côte d’Ivoire’s CI-705 block. With a 70% stake and plans for seismic exploration and drilling, could this be the next big play in the energy frontier? Dive into the details of Vaalco’s bold strategy and its vision for Africa’s energy future.