Savannah plans an 18-month expansion programme at Stubb Creek. (Image source: Savannah Energy)

British independent energy company, Savannah Energy PLC, has completed the acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC), whose principal asset includes 49% non-operated interest in the Stubb Creek oil & gas field 

The Stubb Creek field is operated by Savannah-affiliate Universal Energy Resources Limited with a 51% ownership. 

The acquisition boosts Savannah's reserves and resources base by approximately 30% from 151mn barrel of oil equivalent to 197mn boe, and adds 227bn standard cubic feet of 2C gross gas resources at Stubb Creek Field. This ensures a long-term feedstock gas back up for commercial purposes. 

The Stubb Creek field will be prepared for further production boost to approximately 4.7k bopd from the current 2.7kbopd as Savannah plans an 18-month expansion programme. "We are delighted to announce the completion of the SIPEC Acquisition - the achievement of one of our core business priorities for 2025. Our focus at the Stubb Creek Field will now turn to progressing the expansion project, which we expect to increase production by almost three quarters over the course of 2025/26," said Andrew Knott, Chief Executive Officer of Savannah.

Stubb Creek Field, located in Akwa Ibom State, Nigeria, is a producing oil field with considerable undeveloped, non-associated 2C gas resources. Commercial oil production started at Stubb Creek Field in 2015, with cumulative production of 8.1 MMstb to 31 December 2024. Oil produced at Stubb Creek Field is processed through production facilities onsite and then exported to the Qua Iboe terminal via a 25 km pipeline. The Stubb Creek Field was converted to a 20-year petroleum mining lease, PML20, in accordance with the Petroleum Industry Act 2021 and effective from 1 December 2023.

High hopes in the Niger Delta for Africa Oil (IMAGE SOURCE: Adobe Stock)

Canada’s Africa Oil Corporation has said it hopes to double output and reserves from Nigeria after it takes on full ownership of the privately-owned Netherlands-based company, Prime Oil & Gas, in the coming week

“On closing of that deal we will significantly change the scale of our business, we will double production, we double reserves and significantly boost our liquidity position,” Oliver Quinn, chief commercial officer at Africa Oil told Reuters news agency in an interview.

Assets held by Prime Oil & Gas Coöperatief U.A. — formerly known as Petrobras Oil & Gas — include indirect stakes in deepwater producing Nigerian fields operated by heavyweights Chevron and TotalEnergies.

The non-operating player has a stake in key oil blocks such as PML 2, 3, 4, and PML 52, in the Niger Delta region.

Following the acquisition, Africa Oil expects to produce around 35,000 barrels per day (bpd), Quinn told Reuters.

“They are very significant value barrels because they have very low lifting cost of under US$10, so the margin on the barrels is high and typically sell at premium to Brent.”

As well as boosting its presence in Nigeria, the company has a foothold in Namibia’s dynamic Orange Basin, arguably the hottest exploration property in Africa right now, with a stake in Impact Oil and Gas and exposure to the Venus discovery.

Africa Oil also has exposure to Equatorial Guinea, another major West African oil and gas producer.

On 27 February, Africa Oil’s president and CEO, Roger Tucker, presenting the company’s full-year results for 2024, said it had been a “transformative year” already, and one that will be enhanced again with the acquisition of Prime Oil & Gas.

“This transformational milestone will significantly enhance our scale, financial strength, and ability to deliver meaningful shareholder value,” he said, referring to the acquisition.

"The enlarged Africa Oil will benefit from robust long-term free cash flows and a strong balance sheet with low leverage. We will have direct interests in producing assets in Nigeria, complemented by funded development and exploration projects in the prolific Orange Basin.”

In Namibia, a final investment decision on the Venus discovery by operator TotalEnergies is expected to be taken in 2026, which could further swell Africa Oil’s production numbers.

“Our focus is to add to the cash generation machine, which runs through the decade while on the backend Namibia Venus comes onstream and then we have significant growth in that asset,” Quinn told Reuters.

Read more:

Africa Oil aims for high impact exploration

Orange Basin to be a top drilling zone in 2025 finds Westwood

Côte d’Ivoire offshore blocks (IMAGE SOURCE: Vaalco Energy)

Vaalco Energy has secured an extra tranche of funding as it reorganises its portfolio in Côte d’Ivoire and prepares to drill in Gabon

The Africa-focused company has assets spread across West Africa, in Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea and Nigeria, as well as in Canada.

This week it announced that it secured a new US$300mn revolving credit facility as it steps up work, notably in Côte d’Ivoire where it has just farmed into the CI-705 block offshore.

Vaalco is to become operator of the block with a 70% working interest and a 100% paying interest though a commercial carry arrangement and is partnering with Ivory Coast Exploration Oil & Gas SAS and state-owned PETROCI.

The CI-705 block is located in the prolific Tano basin, approximately 70 km to the west of the company’s other block, CI-40, where the Baobab and Kossipo oil fields are located.

It also sits 60 km west of Eni’s recent Calao discovery.

The move comes a month or after the cessation of production activities from the floating production storage and offloading (FPSO) vessel, Baobab Ivoirien MV10, operated by Canadian Natural Resources International, with a final lifting of crude oil in February.

The Baobab FPSO is to be wet towed to shipyards in Dubai for refurbishment upon departure from the area, scheduled for 24 March, Vaalco said in a statement.

George Maxwell, Vaalco’s chief executive officer, said the company is keen to expand its footprint offshore Côte d’Ivoire with access to CI-705 block, just a year after it first gained access to the market.

“We believe the CI-705 block is favourably located in a proven petroleum system, near existing infrastructure with access to a strong growing domestic market with attractive upside potential,” he said.

Under the terms of the farm-in, Vaalco will conduct seismic reprocessing and interpretation stages and potentially the drilling up to two exploration wells.

“Our initial assessment is that there are both oil and natural gas prospects on the block and we plan to conduct a detailed, integrated geological analysis to assess and mature our understanding of the block’s overall prospectivity.”

Vaalco invested US$3mn to acquire its interest in the new block, which covers approximately 2,300 sq km.

Located in water depths from zero to 2,500 metres, the block is lightly explored with just three wells drilled to date.

“We have demonstrated our ability to acquire, develop and enhance value with the accretive acquisitions we have executed in the past,” said Maxwell.

“We are also excited about the major projects that we have planned in 2025 and 2026, which are expected to deliver a step-change in organic growth across our portfolio.”

This year it intends to conduct drilling in Gabon, to enhance production and add reserves at the Etame and Ebouri fields.

The company’s total production averaged around 25,000 barrels of oil equivalent per day in 2024.

Read more:

Equatorial Guinea to open bid round with upstream focus

Vaalco to deploy Borr Drilling's rig offshore Gabon

Vaalco Energy reports strong Q2 in 2024

Agogo FPSO set for Angolan offshore work (IMAGE SOURCE: Cosco)

Angola’s deep offshore will be a world pioneer when it takes charge of the world’s first ship-based ‘marine factory’ for CO2 capture

The world’s first floating production storage and offloading (FPSO) unit equipped with offshore carbon capture and storage (CCS) technology was launched by Cosco Shipping Heavy Industry recently after being built in Shanghai.

Name Agogo FPSO, the vessel will now make its way to West Africa for work offshore Angola.

“This vessel stands as one of the most environmentally friendly FPSOs globally,” said Cosco Shipping Heavy Industry in a statement to mark the launch.

Transformed from a 320,000-dwt ultra-large crude oil carrier, this ‘offshore gigafactory’ underwent extensive modifications with in Shanghai, including the majority of module lifting operations and all integration tasks.

Upon delivery, Agogo FPSO is set to operate in Angola’s Block 15/06 West Hub area, situated around 180 km offshore at depths reaching 1,650 metres.

The block is operated by Azule Energy, the group that combines both bp and Eni in Angola.

Once operational, it will have a daily oil production capacity of 120,000 barrels and boast an oil storage capacity of 1.6 million barrels.

The Agogo will work for Azule Energy under a 15-year firm charter with the option to extend for another five years, and a total contract value of up to approximately US$5.3bn.

Cosco Shipping called it “the “world’s greenest FPSO” noting that during its time docked in Shanghai, the vessel demonstrated a significant reduction in greenhouse gas emissions.

It achieved this by capturing CO2 from the exhaust of onboard gas turbines, a process estimated to decrease carbon emission by approximately 27%.

“This milestone marks a pivotal step towards realising the zero-carbon FPSO vision,” the Chinese company noted.

Agogo also incorporates a suite of pioneering emission-reduction technologies including electrification, automation, digitalisation, combined cycle power systems, seawater turbine generators, steam generators, hydrocarbon cargo tank inerting systems, and an integrated closed flare system.

Collectively, Cosco Shipping said these advancements contribute to a “substantial reduction” in overall carbon emissions while enhancing operational efficiency.

With these innovations, Agogo is projected to cut CO2 emissions by roughly 230,000 tons annually, it added.

It said the project entailed over 15,000 tons of upper module lifting and more than 100,000 meters of cable installation, with all renovation tasks completed a month ahead of schedule, “setting a new global benchmark for the fastest turnaround in FPSO retrofitting.”

CCS remains in its early stages within both the maritime industry and FPSO sector.

“Agogo FPSO, as the world’s pioneering FPSO integrated with carbon capture technology, carries substantial industrial weight. It serves as a vital technical validation and demonstration for decarbonising offshore oil and gas production.” Cosco Shipping noted.

As well as showcasing the technology in Angola, the company said the FPSO underscores its own commitments to implementing projects centred around “digital intelligence” and “green, low-carbon” principles.

World’s first ship-based ‘marine factory for CO₂ capture

Read more Angolan news here:

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Sequa Petroleum to acquire interests in multiple blocks in Angola