Equatorial Guinea: VAALCO ready to develop offshore Block P

VAALCO Energy announced on Monday that it had received approval to develop, operate and start production from the Venus-Block P discovery offshore Equatorial Guinea.

The US-based independent energy company reported that all partners had finalized the required documents, and that the government of Equatorial Guinea had given its approval for the Joint Operating Agreement (JOA) associated with the previously authorized Development Plan (POD). The Production Sharing Contract (PSC) for Block P stipulates a development and production period of 25 years from the date of approval of the POD.

George Maxwell, CEO of VAALCO, commented: "In signing the final documents for Block P, we are delighted to be progressing with our plans to develop, exploit and launch production from the Block P discovery offshore Equatorial Guinea in the coming years. We will now begin our Front End Engineering Design (FEED) study. We anticipate that the completion of the FEED study will lead to a final economic investment decision, or "FID", which will enable the development of the Venus POD."

The company also announced its intention to disclose further information on its first-quarter 2024 performance in early May.

"Over the past two years, we have significantly expanded our portfolio, strengthening our ability to generate operating cash flow while increasing our cash reserves and maintaining a bank debt-free position," commented Maxwell. "The development of Block P will further strengthen our portfolio by adding another strong global production asset for VAALCO."