US independent oil company VAALCO Energy is expanding its footprint in Côte d'Ivoire by securing a majority stake in Block CI-705 and a 60% working interest in Block CI-40, including the operation of the Kossipo field. This transaction is a strategic step for VAALCO in the West African basin, with development plans scheduled for the second half of 2026.
Under this agreement, VAALCO holds a 70% working interest and a 100% payment interest in Block CI-705, under a commercial carry arrangement. For Block CI-40, the company is acquiring a 60% working interest and will assume the role of operator for the Kossipo field. Petroci, the Ivorian national oil company, retains the remaining shares in both blocks. VAALCO has invested $3 million to secure its position in CI-705.
Block CI-705, covering an area of 2,300 km² in deep waters reaching depths of up to 2,500 metres in the Tano Basin, is located approximately 60 km west of Eni's Calao discovery. Only three wells have been drilled there to date, revealing significant untapped potential. Block CI-40 is home to the Kossipo field, located southwest of the Baobab field. The latter is estimated to contain 102 million barrels of 2C resources, with up to 293 million barrels of crude oil in place. Historical appraisal wells have demonstrated flow rates in excess of 7,000 barrels per day.
VAALCO plans to submit a Field Development Plan during the second half of 2026. An FPSO (Floating Production Storage and Offloading) vessel, currently undergoing refurbishment, is expected to return to site by the second quarter of 2026 to serve as a processing hub for the Baobab and Kossipo fields. The integration of future wells with the surrounding infrastructure will accelerate the time to first oil production.
This acquisition gives VAALCO greater control over drilling design, capital allocation and development timelines, positioning it as a leader in upstream operations in Côte d'Ivoire. It enhances reserve visibility, reduces development risks through accelerated execution and provides access to a growing hydrocarbon hub with established infrastructure. Regionally, this transaction promotes collaboration in West Africa, potentially sharing infrastructure, expertise and investment with emerging producers such as Senegal and Mauritania.
This expansion comes at a time when Côte d'Ivoire is emerging as a new hydrocarbon frontier in West Africa, attracting international investment to exploit its promising offshore resources. VAALCO, already active in several African countries, is thus consolidating its strategy of diversification and sustainable growth in the energy sector.