VAALCO confirms deal for Swedish E&P company Svenska

Feb. 29, 2024

VAALCO Energy has entered an agreement to acquire Stockholm-based Svenska Petroleum Exploration for $66.5 million.

Offshore staff

HOUSTON — VAALCO Energy has entered an agreement to acquire Stockholm-based Svenska Petroleum Exploration for $66.5 million.

Svenska’s main asset is a 27.39% interest in Block CI-40 offshore Côte d’Ivoire, containing the producing Baobab oil field. The company’s share of production at present is about 4,500 boe/d.

According to VAALCO, 24 production and five injection wells have been drilled since the discovery in 2001.

Currently there are nine subsea production wells in service, all connected via manifolds to an FPSO, which is due to be taken offline early next year for maintenance and upgrades. The vessel should be ready to return to service in 2026, at which point operator Canadian Natural Resources plans a new phase of development drilling both at Baobab and the Kossipo Field on the same license. Kossipo has been appraised via two wells drilled in 2002 and 2019.

Baobab is 30 km offshore in water depths ranging from 900 to 1,300 m. Production began in August 2005 and has delivered about 150 MMboe to date.

The CI-40 license term runs through mid-2028, with an option to extend by a further 10 years to 2038.

VAALCO’s transaction also includes a 21.05% interest in OML 145 offshore Nigeria containing the Uge discovery, which operator Exxon Mobil and its partners are not expected to develop for the time being.

02.29.2024