VAALCO Energy Inc., an independent energy company, provided an update on the Etame field reconfiguration. This was in conjunction with the replacement of the existing Floating Production, Storage and Offloading unit (“FPSO”) with a Floating Storage and Offloading vessel (“FSO”) offshore Gabon.
FSO advantages
Moreover, VAALCO states that compared to the current FPSO agreement, FSO will reduce storage and offloading costs by almost 50%. I will also increase effective capacity for storage by over 50%. Additionally, expects to lead to an extension of the economic field life resulting in a corresponding increase in recovery and reserves at Etame.
VAALCO, also reports that current total field level capital conversion estimates are $40 to $50 million gross; ($26 to $32 million net). This capital investment projects to save approximately $20 to $25 million gross per year; ($13 to $16 million net) in operational costs through 2030. This will give the project a very attractive payback period of less than two and a half years.
The company expects that all of the associated engineering, long-lead equipment, and significant contracts; proceed in line with the project timelines and delivery schedules. The deployment of the FSO will take place in the third quarter of 2022.
Additionally, VAALCO anticipates field reconfiguration to begin in March 2022. The Cap Diamant, a double-hull crude tanker built in 2001, re-engineered as the new FSO; arrived at a shipyard in Bahrain in late February 2022 on schedule for the final modifications and certifications. VAALCO expects the vessel to begin sea trials in late June; after that, they will mobilize it to Gabon
CEO statement
“We are pleased that the field reconfiguration and FSO conversion are moving along on time and within budget. This new FSO, which is scheduled to be online in September 2022, costs almost 50% less than the current FPSO and is expected to reduce our overall costs by approximately 17% to 20%. This will significantly improve our margins, enhance our cash flow generation and sustain our operational excellence and robust financial performance at Etame through 2030,” commented George Maxwell, VAALCO’s Chief Executive Officer.
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About VAALCO
Based in Houston, Texas, VAALCO Energy, Inc. is an independent energy company. Its principal engagement is with the acquisition, development, and production of crude oil. Their strategy is to increase reserves and production by developing and exploiting international oil and natural gas properties.
