VAALCO Energy and its partners have announced the finalisation of a joint operating agreement (JOA) for Block P in Equatorial Guinea, following government approval.
The move marks a step forward in the plan to develop the Venus Block P.
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With a 60% interest, Vaalco is serving as the operator of the block, while the other partners are state-owned GEPetrol and Atlas Petroleum International Ltd, reported the Oil & Gas Journal.
The Block P production sharing contract has been set for a development and production period of 25 years from the approval date of the plan of development (POD).
Covering an area of 1,253km² in the Rio Muni basin, Block P includes both the Venus PDA and an exploration area.
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The Venus discovery is located near the mainland of Equatorial Guinea and in proximity to the Hess-operated Ceiba and Okume fields.
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By GlobalDataThe exploration campaign at Venus, as part of the POD, will include a minimum of two wells, targeting the SW Grande and Marte prospects. These prospects hold the potential to significantly increase the reserve base in the region.
Vaalco CEO George Maxwell said: “With final documents for Block P signed, we are very excited to proceed with our plans to develop, operate and begin producing from the discovery in Block P offshore Equatorial Guinea over the next few years.”
The company stated that it plans to proceed with a FEED study, which would lead to an economic final investment decision (FID) for the development of the Venus POD.
Maxwell said: “Over the past two years, we have greatly diversified our portfolio, which has expanded our ability to generate operational cash flow, all while growing our cash position and remaining bank-debt free. The Block P development will further enhance our portfolio by adding yet another strong producing asset to Vaalco’s global portfolio.”
