VAALCO Energy, Inc. Announces Significant Milestone in Its Côte D’Ivoire FPSO Dry Dock Refurbishment Project
VAALCO Energy (NYSE: EGY) has reached a significant milestone in its Côte d'Ivoire FPSO Dry Dock Refurbishment Project. The FPSO Baobab Ivoirien MV10, operated by CNRI, ceased hydrocarbon production on January 31, 2025, with final crude oil lifting scheduled for February 6, 2025.
The project team has begun mobilizing workforce support vessels and equipment for the FPSO's safe disconnection. The vessel will be wet towed to Dubai shipyards for refurbishment, with departure scheduled for March 24, 2025.
Upon completion, the refurbishment is expected to enable production continuation until at least 2038, subject to regulatory approvals. The company has already achieved a 1.8x payback on its initial net investment in Côte d'Ivoire within eight months of closing, with asset performance exceeding acquisition expectations.
VAALCO Energy (NYSE: EGY) ha raggiunto un traguardo significativo nel suo progetto di ristrutturazione dell'FPSO Dry Dock in Costa d'Avorio. L'FPSO Baobab Ivoirien MV10, operato da CNRI, ha cessato la produzione di idrocarburi il 31 gennaio 2025, con il sollevamento finale di petrolio greggio programmato per il 6 febbraio 2025.
Il team del progetto ha iniziato a mobilitare le navi di supporto alla forza lavoro e le attrezzature per la sicura disconnessione dell'FPSO. L'imbarcazione sarà rimorchiata a umido verso i cantieri navali di Dubai per la ristrutturazione, con partenza prevista per il 24 marzo 2025.
Una volta completata, la ristrutturazione dovrebbe consentire la continuazione della produzione fino almeno al 2038, soggetta ad approvazioni normative. L'azienda ha già ottenuto un ritorno di 1,8 volte sul suo investimento netto iniziale in Costa d'Avorio entro otto mesi dalla chiusura, con le performance degli asset che hanno superato le aspettative di acquisizione.
VAALCO Energy (NYSE: EGY) ha alcanzado un hito significativo en su proyecto de renovación del FPSO Dry Dock en Costa de Marfil. El FPSO Baobab Ivoirien MV10, operado por CNRI, cesó la producción de hidrocarburos el 31 de enero de 2025, con la última carga de crudo programada para el 6 de febrero de 2025.
El equipo del proyecto ha comenzado a movilizar buques de soporte a la mano de obra y equipos para la desconexión segura del FPSO. El buque será remolcado a Dubai para su renovación, con salida programada para el 24 de marzo de 2025.
Una vez completada, se espera que la renovación permita la continuación de la producción hasta al menos 2038, sujeto a aprobaciones regulatorias. La empresa ya ha logrado un retorno de 1.8 veces sobre su inversión neta inicial en Costa de Marfil en un plazo de ocho meses tras el cierre, con el rendimiento de los activos superando las expectativas de adquisición.
VAALCO Energy (NYSE: EGY)은 코트디부아르 FPSO 드라이 독 보수 프로젝트에서 중요한 이정표에 도달했습니다. CNRI에서 운영하는 FPSO Baobab Ivoirien MV10은 2025년 1월 31일에 탄화수소 생산을 중단하고, 최종 원유 선적은 2025년 2월 6일로 예정되어 있습니다.
프로젝트 팀은 FPSO의 안전한 분리를 위해 인력 지원 선박과 장비를 동원하기 시작했습니다. 이 선박은 리모델링을 위해 두바이 조선소로 습식으로 이동할 예정이며, 출항은 2025년 3월 24일로 예정되어 있습니다.
보수 작업이 완료되면, 최소한 2038년까지 생산이 계속될 것으로 예상되며, 규제 승인의 필요가 있습니다. 회사는 이미 코트디부아르에서 초기 순 투자에 대한 1.8배의 수익을 거둔 상태이며, 자산 성과는 인수 예상치를 초과했습니다.
VAALCO Energy (NYSE: EGY) a atteint une étape significative dans son projet de rénovation du FPSO Dry Dock en Côte d'Ivoire. Le FPSO Baobab Ivoirien MV10, exploité par CNRI, a cessé la production d'hydrocarbures le 31 janvier 2025, avec le dernier chargement de pétrole brut prévu pour le 6 février 2025.
Équipe du projet a commencé à mobiliser des navires de soutien et de l'équipement pour la déconnexion en toute sécurité du FPSO. Le navire sera remorqué humide vers les chantiers navals de Dubaï pour une rénovation, avec un départ prévu le 24 mars 2025.
Une fois terminée, la rénovation devrait permettre la continuation de la production jusqu'au moins 2038, sous réserve des approbations réglementaires. L'entreprise a déjà atteint un retour de 1,8 fois sur son investissement net initial en Côte d'Ivoire dans un délai de huit mois après la clôture, avec des performances d'actifs dépassant les attentes d'acquisition.
VAALCO Energy (NYSE: EGY) hat einen bedeutenden Meilenstein in seinem FPSO-Trockendock-Renovierungsprojekt in Côte d'Ivoire erreicht. Das von CNRI betriebene FPSO Baobab Ivoirien MV10 hat am 31. Januar 2025 die Kohlenwasserstoffproduktion eingestellt, die letzte Rohölverladung ist für den 6. Februar 2025 geplant.
Das Projektteam hat begonnen, Unterstützungsschiffe und Ausrüstung für die sichere Trennung des FPSO zu mobilisieren. Das Schiff wird zur Renovierung zur Werft in Dubai geschleppt, die Abfahrt ist für den 24. März 2025 geplant.
Nach der Fertigstellung wird erwartet, dass die Renovierung die Fortsetzung der Produktion bis mindestens 2038 ermöglicht, vorbehaltlich der behördlichen Genehmigungen. Das Unternehmen hat bereits einen Rückfluss von 1,8x auf seine ursprüngliche Nettoinvestition in Côte d'Ivoire innerhalb von acht Monaten nach dem Abschluss erzielt, wobei die Vermögenswerte die Erwerbsprognosen übertroffen haben.
- 1.8x return on initial investment achieved in just 8 months
- Asset performance exceeding acquisition expectations
- Refurbishment expected to extend production until 2038
- Temporary production halt during FPSO refurbishment
- Project completion subject to regulatory approvals
Insights
The scheduled maintenance of the Baobab Ivoirien MV10 FPSO marks a critical operational milestone for VAALCO Energy's Côte d'Ivoire assets. The temporary production halt and subsequent refurbishment in Dubai represents standard industry practice for FPSO life extension, typically occurring every 15-20 years to ensure vessel integrity and operational safety.
The project's execution timing is particularly strategic, as it positions VAALCO to potentially extend production until 2038, subject to regulatory approvals. This timeline extension is significant given that most West African FPSO installations typically have initial design lives of 20-25 years. The 1.8x return on investment within just eight months of acquisition indicates exceptional asset performance, substantially outpacing typical industry payback periods of 3-5 years for similar assets.
The planned March 24 vessel departure provides adequate time for safe disconnection procedures and thorough pre-transport preparations. This methodical approach aligns with best practices in FPSO operations and demonstrates strong project management. While the temporary production halt will impact near-term cash flow, the refurbishment's long-term value proposition in extending field life and maintaining production efficiency outweighs short-term considerations.
HOUSTON, Feb. 03, 2025 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) is pleased to announce a significant milestone in its Côte d’Ivoire Floating Production Storage and Offloading vessel ("FPSO") Dry Dock Refurbishment Project.
In alignment with the project timeline, the FPSO Baobab Ivoirien MV10, operated by Canadian Natural Resources International (“CNRI”), ceased hydrocarbon production as scheduled on January 31, 2025. The final lifting of crude oil from the vessel is set to take place on or around February 6, 2025.
The project team has commenced mobilization efforts, deploying the necessary workforce support vessels and equipment to facilitate the safe disconnection of the FPSO. The vessel is planned to be wet towed to the shipyards in Dubai for refurbishment upon departure from the field on March 24, 2025.
“We are pleased with the progress of this critical project and remain committed to ensuring a smooth and efficient transition for the FPSO disconnection and refurbishment which we expect, when complete, will allow production to continue until at least 2038, subject to the final regulatory approvals on the license extension and further investment,” said George Maxwell, Vaalco’s Chief Executive Officer. “This milestone represents another step forward in delivering on our strategic objectives while maintaining the highest standards of safety and operational excellence. We have already been paid back 1.8x1 our initial net investment in Côte d’Ivoire in the eight months since closing and the performance of the asset has tracked well ahead of our expectations at the time of the acquisition.”
Vaalco will provide further updates as the project progresses.
About Vaalco
Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, Nigeria and Canada.
For Further Information
| Vaalco Energy, Inc. (General and Investor Enquiries) | +00 1 713 543 3422 |
| Website: | www.vaalco.com |
| Al Petrie Advisors (US Investor Relations) | +00 1 713 543 3422 |
| Al Petrie / Chris Delange | |
| Buchanan (UK Financial PR) | +44 (0) 207 466 5000 |
| Ben Romney / Barry Archer | Vaalco@buchanan.uk.com |
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and “forward-looking information” within the meaning of applicable Canadian securities laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to (i) estimates of future drilling, production, sales and costs of acquiring crude oil, natural gas and natural gas liquids; (ii) expectations regarding Vaalco's ability to effectively integrate assets and properties it has acquired as a result of the Svenska acquisition into its operations; (iii) expectations regarding future exploration and the development, growth and potential of Vaalco’s operations, project pipeline and investments, and schedule and anticipated benefits to be derived therefrom; (iv) expectations regarding future acquisitions, investments or divestitures; (v) expectations of future balance sheet strength; and (vi) expectations of future equity and enterprise value.
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the FPSO servicing the Baobab field; and the risks described under the caption “Risk Factors” in Vaalco’s 2023 Annual Report on Form 10-K filed with the SEC on March 15, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the SEC.
Inside Information
This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Company’s obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Corporate Secretary of Vaalco.
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1 Payback of 1.8x is based on unaudited operational cash flow for the Côte d’Ivoire assets compared to the acquisition price of
FAQ
When will VAALCO's FPSO Baobab Ivoirien MV10 cease production for refurbishment?
What is the expected timeline for EGY's FPSO refurbishment project in Dubai?
How has VAALCO's Côte d'Ivoire investment performed since acquisition?
What is the expected production extension period after EGY's FPSO refurbishment?
