E&P

VAALCO Energy has completed its Phase 3 offshore drilling programme in Gabon, bringing the ETSEM-3H development well into production and demobilising the Borr Norve drilling rig from the SE Etame platform

The company has also commenced drilling activities under the Baobab Phase 5 campaign offshore Côte d’Ivoire

At the SE Etame field in Gabon, the ETSEM-3H well was drilled and completed in an attic location, targeting 300 metres of net pay in high-quality Gamba reservoir sands along its lateral wellbore. The well achieved a stabilised initial production rate of approximately 2,000 gross barrels of oil per day (BOPD), equivalent to 1,140 BOPD net to VAALCO.

With ETSEM-3H completed, the Phase 3 drilling programme has concluded, and the Borr Norve rig has been removed from the field.

Offshore Côte d’Ivoire, work has begun on the Baobab Phase 5 drilling programme, with the operator batch-setting the top-hole sections of the planned wells. Once the top-hole sections have been drilled across the programme, the wells will be completed and brought into production sequentially.

The campaign comprises four production wells, three water-injection wells and two workovers. VAALCO expects the first new producer to come online towards the end of 2026, with the programme anticipated to support significant production growth in 2027.

George Maxwell, VAALCO’s Chief Executive Officer, commented, “We are pleased with the results of the ETSEM-3H development well, which was landed in an attic location within the SE Etame field, and is now on production at about 2,000 gross BOPD (1,140 BOPD net to Vaalco). This represents the final well in our successful Phase 3 drilling campaign, and the drilling rig has now been demobilized from the field. In Côte d’Ivoire, following the successful re-start of the Baobab field during the second quarter, we have now commenced the Phase 5 drilling campaign with batch-setting the top-hole sections of the new wells. The current plan for the Phase 5 drilling campaign consists of four producers, three water injectors and two workovers. We expect to have the first new producer online near the end of the year, with meaningful production increases expected in 2027. Our continued success and organic project pipeline support Vaalco’s strategic focus on growing production, reserves and value for our shareholders.”

Khaled Salah, vice president - Africa, AVEVA. (Image source: AVEVA)

Since the outbreak of the US-Iran war, the oil industry has been forced to reckon with one of the most challenging operating environments in decades

With supply now disrupted on two fronts – the Strait of Hormuz and the Red Sea – crude prices have hit US$100 in recent months as markets react to every military strike and diplomatic tweet.

For Africa, the Red Sea disruption brings its own costs. UNCTAD previously found that diversions around the Cape of Good Hope add more than ten days to delivery times on average, which strains companies that operate with limited inventories. Disruption-related surcharges are also pushing up landed costs at Africa’s Indian Ocean ports, according to an analysis by Bloomsbury Intelligence and Security Institute (BISI).

Refiners and producers are grappling with supply-chain bottlenecks, higher freight costs, and growing signs of demand erosion as sustained high energy prices dampen spending.

The industry is no stranger to complex global supply chains. But the new challenge requires companies to adapt to a market where both supply and demand can pivot with speed.

Unpredictable times

In this operating environment, every piece of information counts – across suppliers, logistics providers, operations teams and customers.

By knitting together a comprehensive minute-by-minute operational snapshot of the global energy landscape, companies can predict, analyze and react to volatile energy conditions with optimal precision.

In the five months since the start of the conflict, Brent crude has traded in a range from roughly 6 percent below its pre-war level to almost 50 per cent above it. This geopolitical landscape creates complex challenges for producers and refiners.

Equally, periods of volatility create significant commercial openings for companies that can respond faster than the market. A sudden spike in crude prices can all create a short-lived window for higher margins.

Companies operating from connected data can rapidly adjust production plans and redirect cargoes, turning market turbulence into a source of competitive advantage.

Building resilience and agility

Historically, energy companies have been primarily motivated by efficiency and cost margins. While those objectives still stand, organizations are increasingly finding that resilience and agility are key performance differentiators.

Companies become more resilient when they operate from a common view of data and performance. To use a boating analogy, we're all navigating the same storm. Some organizations have cargo ships, others have yachts. The conditions are the same for everyone – what differs is how well-equipped each vessel is to withstand rough seas.

Connected operational systems help organizations build a stronger boat. Increasingly, that means looking beyond any single company and to every entity who touches the barrel.

Seeing the big picture

In what has been described by experts as the ‘age of permacrisis’, supply shocks often overlap or occur simultaneously. For example, disruption in Hormuz, renewed Red Sea attacks, or tighter sanctions on Russian exports can affect crude availability and shipping routes within hours – and sometimes all at once.

Refineries process blends and crude slates sourced from multiple regions, each with distinct physical properties and refining characteristics. Texas crude behaves differently from Saudi crude. Saudi crude behaves differently from Abu Dhabi crude. Venezuelan crude behaves differently again.

Historically, engineering teams would manually run a limited number of operational scenarios. Now connected AI systems can run thousands of crude blend combinations simultaneously while incorporating crude prices, refined product prices, electricity costs, operational constraints and regional market demand – determining in near real-time exactly which combination will generate the highest profitability possible.

Connection in action

Abu Dhabi National Oil Company (ADNOC) offers an example of connected operations in practice. The energy giant has combined data from production assets, pipelines, terminals and operations teams into a shared operational environment.

The platform integrates more than 10 million data tags across 120-plus dashboards, giving decision-makers a single operational view of the business. The system generates US$60-US$100mn in savings through optimized operations across 14 subsidiaries, enabling the company to respond faster when market conditions or supply chains shift.

In a broader sense, the highest-performing organisations globally are being recognised not just for productivity, but for supply chain resilience and their ability to connect data across entire value chains.

According to McKinsey analysis of the World Economic Forum Global Lighthouse Network, organisations that digitally connect suppliers, operations and customers experienced eight times less revenue shock following the pandemic than their peers.

Those connected value chains also achieved 50 percent faster new-product introduction by improving visibility and coordination across the network.

Digitising relationships

Industrial resilience is rapidly shifting from being an internal capability to a network capability. Competitive advantage is increasingly determined by how well producers, refiners, suppliers, logistics providers and technology partners operate from a common understanding of data and performance.

In the last decade, industrial companies prioritized digitizing assets. The next phase will see digitising relationships come to the forefront.

The article has been written by Khaled Salah, vice president – Africa, AVEVA

During a prominent energy conference held recently in Cape Town, a senior government official revealed that Angola intends to implement faster exploration concessions from next year.

During a prominent energy conference held recently in Cape Town, a senior government official revealed that Angola intends to implement faster exploration concessions from next year.

This significant shift in policy forms the cornerstone of a newly developed, long-term hydrocarbon strategy. The primary objective of this comprehensive strategy is to attract substantial foreign investment and actively stimulate oil and gas production across the nation. As Sub-Saharan Africa’s second-largest oil producer—trailing only behind Nigeria—Angola is positioning itself to remain highly competitive in an evolving global energy landscape.

A 25-Year Blueprint for Energy Investment

At the heart of this strategic overhaul is an ambitious 25-year plan designed to revitalise the nation's energy sector. This extensive blueprint seeks to build upon a series of successful regulatory reforms that have already yielded positive results for the domestic market. In recent times, these legislative and structural adjustments have encouraged major international oil companies, including industry leaders such as TotalEnergies and Eni, to commit billions of dollars to various energy projects within the country. The upcoming 25-year framework aims to solidify this momentum, ensuring that the regulatory environment remains exceptionally hospitable to large-scale, long-term capital commitments.

Overhauling the Concession and Auction Framework

In a move to streamline operations, Angola intends to drop its traditional multi-year oil and gas auction rounds. Historically, these prolonged auction cycles dictated the pace of exploration, often resulting in extended periods between new drilling initiatives. Moving forward, the government will replace this system with a more dynamic and responsive approach.

Key changes to the exploration rollout include:

• Opening New Blocks: The nation plans to open up more than 100 blocks for energy exploration.
• Onshore Focus: The vast majority of these newly available blocks will be strategically located onshore.
• Implementation Timeline: This expansive rollout is scheduled to commence as soon as the 25-year plan is formally passed later this year.

Speaking late on Wednesday, Alcides Andrade, a board member at the National Agency for Petroleum, Gas and Biofuels (ANPG), elaborated on these structural changes.

Expediting the Award Process

One of the most critical elements of the new hydrocarbon strategy is the deliberate acceleration of administrative procedures. Investors have frequently highlighted bureaucratic delays as a hurdle to operational efficiency across the continent. Addressing this directly, Andrade stated that the ANPG is actively looking to reduce the time taken to award exploration concessions.

The regulator is now aiming for a highly streamlined three-month award process. This represents a 50 percent reduction in administrative time compared to the current six-month timeframe. By halving the waiting period, Angola hopes to provide energy companies with the agility required to deploy capital and commence operations much faster, thereby improving the overall commercial viability of the proposed projects.

A Tailored, Risk-Profile-Based Model

Recognising that different geological assets present unique technical and financial challenges, the government is also reforming its approach to the terms and conditions attached to exploration agreements. Andrade emphasised that the new regulatory framework will explicitly not be a “one-size-fits-all” approach.

Instead, the ANPG intends to implement a sophisticated risk-profile-based model. This nuanced strategy will carefully distinguish between varying types of assets to ensure that the fiscal and operational terms reflect the specific realities of each project. Key distinctions within this new model will include differentiating between marginal fields and mature fields, as well as offering bespoke terms for onshore developments versus deep-water blocks.

Long-Term Production Objectives

Ultimately, the overarching goal of these sweeping reforms is to reverse any stagnation and drive substantial growth in domestic crude output. By facilitating a faster concession process and offering tailored investment terms, the Angolan government anticipates a significant increase in drilling activity.

Drilling more exploration wells will hopefully lead to higher crude production over the long term, according to Andrade. Through the successful implementation of this 25-year plan, the nation aims to secure its vital role in the international energy supply chain for decades to come.

The Senegalese government has opened 104 oil and gas blocks to international investors, seeking new upstream exploration and production contracts to accelerate the development of its natural resources.

West Africa's hydrocarbon landscape is shifting rapidly towards large-scale acreage commercialisation, and Senegal is now positioning itself at the very forefront of this regional drive.

The Senegalese government has opened 104 oil and gas blocks to international investors, seeking new upstream exploration and production contracts to accelerate the development of its natural resources.

Announced by Energy and Petroleum Minister El Hadji Abdourahmane Diouf at African Energy Week (AEW) 2026 in Cape Town, the offering signals an aggressive push to draw foreign direct investment into the nation's energy sector while expanding domestic industrial capacity.

A Reorganised Acreage Landscape

The newly available assets stem from a major restructuring carried out earlier this year. In March 2026, Senegal reorganised its acreage into 113 distinct blocks, comprising 65 onshore and 48 offshore tracts. While Oil & Gas Middle East reported in September that 109 blocks were being marketed, the portfolio status has since crystallised:

• 104 blocks are actively open and available to international investors.
• 4 blocks are already held under existing petroleum contracts.
• 5 offshore blocks are currently assigned to Italian energy major Eni for technical evaluations.

Eni agreed to fund these technical assessments under a memorandum signed on the sidelines of Gastech. Crucially, the agreement functions strictly as a study framework rather than an upstream petroleum contract, conferring no automatic operational rights.

Addressing delegates in Cape Town, Diouf emphasised regulatory certainty, stating that the objective is to “show investors that Senegal remains the country it has always been: open, hospitable and respectful of international procedures.”

Fast-Tracking Yakaar-Teranga and Domestic Gas

Beyond newly delineated licensing blocks, Senegal is prioritising major offshore gas assets to anchor national electrification and industrialisation. The state is actively searching for commercial partners to advance the world-scale Yakaar-Teranga gas project alongside national oil company Petrosen.

Petrosen assumed complete operational control of the asset after Kosmos Energy withdrew in April. According to reporting by Ecofin Agency, the exit involved no financial compensation, leaving Petrosen’s leadership targeting initial commercial production between late 2028 and early 2029—a timetable viewed by several market analysts as optimistic.

The government views gas monetisation as an essential catalyst for broader economic transformation rather than a simple export play. As Diouf noted: “Our strategy is to build the value chain from the well to the factory, with gas at the heart of our industrial ambition.” Under this framework, Yakaar-Teranga will deliver feedstock for domestic power generation, industrial facilities such as fertiliser plants, and international liquefied natural gas markets.

Downstream Ambitions and Regional Integration

Senegal’s upstream momentum is matched by targeted downstream development intended to retain processing margins onshore. Diouf highlighted ongoing plans to construct a second domestic refinery dedicated to processing crude from the offshore Sangomar field, requiring an estimated capital investment of $2 billion to $3 billion (approximately AED 7.35 billion to AED 11.02 billion).

On 23 September in New York, the Société Africaine de Raffinage (SAR) signed a memorandum with Turkish contractor Yamata to develop the proposed four-million-tonne-per-annum refining facility. Similar to Eni’s offshore arrangement, reports have noted that this document remains a preliminary memorandum rather than a fully binding commercial contract.

Domestic integration and capacity building remain central conditions for incoming capital. Diouf explicitly urged new entrants to incorporate domestic suppliers and local labour into their operations from project inception. “Capital must earn a return. Senegal must gain a stronger economy. The partnership we seek must serve both purposes,” he affirmed.

Concurrently, Dakar is championing deeper regional collaboration across the MSGBC basin. Senegal intends to broaden the current five-nation alliance—comprising Senegal, Mauritania, The Gambia, Guinea-Bissau, and Guinea—into a larger regional energy coalition, establishing West Africa as a unified, competitive energy frontier.