E&P

Vaalco Energy has brought back online the Baobab field on CI-40 block offshore Ivory Coast following the refurbishment of Baobab Ivoirien Floating Production Storage and Offloading vessel

This comes following a nine-month refurbishment in Dubai, as the FPSO returned to Côte d’Ivoire in early Q2 2026, was moored into position and re-connected to the field infrastructure.

Production has resumed from four producing wells with the remaining three producers expected to come online shortly; the field is performing in line with Vaalco’s expectations.

FPSO refurbishment was undertaken to extend the life of the vessel and to ensure its long-term operational capacity as a significant development drilling program at Baobab is planned to begin in the second half of 2026; and Phase 5 drilling programme is expected to include four producers, two to three injectors and two workovers providing potential meaningful additions to production from the main Baobab field.

George Maxwell, Vaalco’s Chief Executive Officer, commented, “We are excited that the Baobab field on the CI-40 block offshore Côte d’Ivoire has restarted production in line with our projected timeline. We have the CI-40 block license extended through 2038 and believe that there is significant development drilling upside at Baobab. In early 2024, we had no assets in Côte d’Ivoire and now we have developed a strong position with development and exploration potential. We are at a critical junction, with successes in the Gabon drilling campaign and the Baobab field returning to production, and we believe that the remainder of 2026 will be very impactful. We remain focused on execution and driving meaningful growth through our organic capital programs that we believe will translate into value for our shareholders in 2026 and beyond.” 

Advanced drilling technologies facilitate new Egypt discovery.

The drilling of an offshore exploration well from onshore using advanced directional drilling technologies has resulted in a new gas discovery offshore Egypt

Egypt’s Ministry of Petroleum and Mineral Resources has announced a new natural gas discovery in the Nile Delta region, with estimated production rates of around 50 Mmcf/d. The discovery follows the successful drilling of the exploratory well (Nidoco N-2) within the West Madi concession area, operated by Italy's Eni in partnership with the UK's bp and the Egyptian General Petroleum Corporation, through Petrobel, the joint company between EGPC and Eni.

 Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, visited the EDC-56 drilling rig, which executed the well operations in the West Abu Madi area in Kafr El-Sheikh Governorate. The well is located approximately 3 km offshore in shallow waters with a depth of around 10 m. The well was drilled from onshore using state-of-the-art directional drilling technologies, contributing to cost optimisation and enhanced operational efficiency.

This is in line with the government’s focus on bringing in and localising modern technologies that contribute to increasing petroleum and gas productivity while reducing time and cost, in co-operation with leading service companies, drilling and technology solution providers, and production partners. The Minister in February announced that the petroleum sector is accelerating the implementation of horizontal drilling and hydraulic fracturing technologies, which enable access to oil and gas resources that are difficult to exploit through conventional methods, with the aim of increasing oil and gas production rates within the sector's five-year plan.

The Minister said that this discovery, alongside increased production from existing fields, reflects the Petroleum Sector's success in settling dues owed to foreign partners, with full clearance targeted by the end of June, highlighting the state's commitment to strengthening partner confidence and fostering an attractive investment environment. He added that the regular settlement of dues has encouraged partners to intensify upstream activities, increase drilling and production rates, and expand the development of mature fields by extending agreement periods that helped attract new investments to these areas.

Situated less than 2 km away from the nearest production facilities, the well's proximity to existing infrastructure enables rapid connection to the network within the coming weeks and the start of early production, enhancing capital efficiency.

The Minister also noted that the discovery represents a model for maximising the utilisation of existing infrastructure, increasing production rates, and supporting gas supply to the domestic market. It also highlights Eni's continued success in exploration and production activities across its concession areas.

The new discovery follows Eni’s gas and condensate discovery in the Temsah concession in the Eastern Mediterranean in April, with preliminary estimates of about 2 trillion cubic feet of gas and 130 million barrels of associated condensates. The Denise W discovery lies 70 km offshore in 95 m of water depth and less than 10 km from existing infrastructure, offering potential for a fast-track development.

The Egyptian government is encouraging investment and incentivising exploration and production to reverse years of decline and reduce energy imports, a drive which is being given additional impetus by the current situation in the Middle East. These efforts seem to be paying off, with a number of promising discoveries being made recently. 

The offshore well was drilled from onshore using directional drilling technologies. (Image source: Adobe Stock)

Chevron has started drilling a new well in the Nargis natural gas field in the Mediterranean Sea, as part of ongoing efforts to develop the field, discovered in 2022

The project is being developed by Chevron as the main operator, in partnership with Eni, as well as Mubadala Energy and Tharwa Petroleum Company. The Nargis field is located in the prolific East Nile Delta Basin of the Mediterranean Sea, approximately 50 km offshore.

Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, reviewed the launch of drilling activities aboard the drilling vessel Stena Forth, recently arrived in Egypt to begin operations at the field.

The Minister said that the drilling of the new well is part of the Ministry of Petroleum and Mineral Resources' strategy to encourage international energy companies to accelerate the development of untapped gas discoveries, including the Nargis Field, and bring them into the development and production portfolio.

The Egyptian government is encouraging investment and incentivising exploration and production to reverse years of decline and reduce energy imports, a drive which is being given additional impetus by the current situation in the Middle East. These efforts seem to be paying off, with a high level of exploration activity and a number of promising discoveries being made.

The most recent is the discovery by Agiba Petroleum Company, the joint venture between the Egyptian General Petroleum Corporation (EGPC) and Eni, in the Western Desert, representing the company's most significant discovery over the past 15 years.

The Ministry announced that the discovery was achieved through the South Bostan-1X exploratory well, drilled using the EDC-9 rig operated by the Egyptian Drilling Company (EDC). Preliminary estimates indicate reserves of approximately 330 bcf of gas and 10 million bbl of condensates and crude oil, with total estimated recoverable reserves reaching 70 million bbl of oil equivalent.

The significance of the new discovery is further enhanced by its proximity to existing facilities and infrastructure, which will enable its rapid development and swift tie-in to the production network.

The well encountered multiple sandstone and limestone reservoirs, with a net pay thickness of 400 feet, highlighting the discovery's strong economic potential and production significance.

The new discovery reflects the success of the Ministry of Petroleum and Mineral Resources' incentives to encourage partners to intensify exploration activities in areas adjacent to existing fields. This approach has facilitated the identification of new discoveries in close proximity to established infrastructure and production facilities, eliminating the need for significant new infrastructure investments. As a result, development costs are reduced, time to first production is accelerated, and operating efficiencies are enhanced

In early May Eni made a new natural gas discovery in the Nile Delta region, with estimated production rates of around 50 Mmcf/d, following its gas and condensate discovery in the Temsah concession in the Eastern Mediterranean in April, with preliminary estimates of about 2 trillion cubic feet of gas and 130 million barrels of associated condensates.

Also this year, Dragon Oil announced a new oil discovery following the successful drilling of the South El Wasl ‘B.B2’ exploration well in the Gulf of Suez, with initial results indicating production rates above 2,000 bpd of oil. While US Apache, in collaboration with the Egyptian General Petroleum Corporation (EGPC), made a new natural gas discovery in the Western Desert, following the drilling of the SKAL-1X exploratory well in the South Kalabsha area, with initial test results indicating a daily production rates of approximately 26 million cubic feet (mmcf) of natural gas and 2,700 barrels of condensate.

the Strategic Energy Report 2025 outlines a robust, dual-pronged strategy focused on African operations.

The global energy landscape is undergoing profound shifts, driven by a decade of underinvestment in exploration and production that has been further exacerbated by geopolitical conflicts in Ukraine and the Middle East.

In response to these pressures, the Strategic Energy Report 2025 outlines a robust, dual-pronged strategy focused on African operations, balancing immediate, lower-risk production with long-term, high-reward exploration opportunities

Strategic Overview and Financing

The company’s core strategy balances lower-risk appraisal and development in proven basins with high-risk, high-reward exploration. In the near term, the priority is achieving 'first oil' at the Thali Production Sharing Contract (PSC) in Cameroon. Simultaneously, the company is maintaining selective exposure to promising exploration frontiers in Namibia and South Africa, a strategy validated by numerous major discoveries in the region since 2020.

To fund these developments and reduce the early-stage equity burden on shareholders, the company announced two major farm-out agreements in January 2025 with Prime Global Energies Limited. These transactions involve farming out a 42.5% interest in the Cameroon licence and a 25% interest in the Namibia licence, with both expected to complete in 2026. The South African licence already operates as a 50-50 joint venture with an industry partner.

Cameroon: Path to First Oil

Operational efforts in Cameroon are entirely focussed on the NJOM-3 well. The well's design and location have been optimised to target the thickest reservoir sections while minimising exposure to potential gas caps. The immediate operational plan is to drill, test, and then suspend NJOM-3 while preparing for further production wells and the installation of a Mobile Offshore Production Unit (MOPU).

Essential equipment, including a newly ordered mud-line suspension system, has already been delivered and safely stored at the port in Douala. While the final rig selection depends on receiving official documentation from the Ministry of Mines, Industries and Technological Development (MINMIDT), multiple rigs are available from late 2026 onward, making a Q4 2026 spud a distinct possibility.

Namibia: Seismic Analysis and Regulatory Approvals

In Namibia's PEL96 block, the company is evaluating options to acquire new, or reprocess existing, 2D seismic data to refine three specific areas of interest for future 3D seismic acquisition.

Operational progress has faced delays due to organisational shifts following the country's March 2025 presidential election. The new President created an Upstream Petroleum Unit (UPU) to oversee the Ministry of Mines and Energy (MIME) and develop adapted taxation and local content regulations. Despite these delays, the company reported in mid-May 2026 that the UPU has successfully completed its due diligence on their partner, Prime, and has recommended expediting the farm-out approval to the Minister. The company also successfully entered the First Renewal Period of the licence in June 2025.

South Africa: Awaiting Regulatory Clarity

Operations in South Africa remain in a holding pattern. The company and the wider industry are waiting for the resolution of environmental regulations and potential related litigation before they can initiate planned 3D seismic data acquisition over the deep-water section of the Algoa Gamtoos licence.

Operational Control and Sustainability Goals

The company strongly prefers to act as the operator of its assets to maintain strict control over costs and timelines. It keeps baseline costs low while retaining the ability to quickly scale up resources when project activity demands it by utilising flexible contracts with strategic partners like EPI for subsurface expertise and Bedrock Drilling for well management.

This operational growth is designed to align with the environmental and economic goals of the host nations. By increasing local oil and gas production, the company aims to support domestic economic development, significantly reduce reliance on liquid fuel imports, and displace less efficient, highly polluting diesel and fuel-oil power generation to help these countries meet their COP26 climate commitments.