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VAALCO Energy Signs Contract to Support Subsea Reconfiguration and FSO Deployment at Etame Field

Vaalco-energy-Subsea-Reconfiguration

VAALCO Energy announced contracting with DOF Subsea to perform subsea construction and installation services. They intend to support the subsea reconfiguration; to do so is necessary to replace the existing Floating Production, Storage, and Offloading unit (“FPSO”) with a Floating Storage and Oflanding Vessel (“FSO”).

FSO is meant to be operational by September 2022. Before that, the engineering and design work is planned to be started by July. It would be work related to the field infrastructure upgrade and the subsea labor.

The four Key Highlights:

  1. Use a DOF Subsea offshore construction vessel to do the job.
  2. Transportation from the UK to the Etame field of over 5,000meters of flexible pipelines.
  3. Performing retrieval and relocation of in-field flowlines and umbilicals.
  4. Assisting in the connection of new risers to the FSO. 

“We continue to progress forward with our field reconfiguration and FSO conversion at Etame. Always on time and within the capital guidance we previously provided. The FSO increases effective storage capacity by over 50% and reduces costs by almost 50% compared to the current FPSO.” Commented George Maxwell, VAALCO’s Chief Executive Officer.

He also added “We continue to estimate total capital conversion costs of $40 to $50 million gross ($26 to $32 million net to VAALCO). Our annual projected operational cost savings of approximately $20 to $25 million gross per year ($13 to $16 million net to VAALCO). And through 2030, we are giving the project a very attractive payback period of less than two and a half years. This project will significantly improve our margins. Also, enhance our cash flow generation and sustain our operational excellence and robust financial performance at Etame through 2030. We are delivering on our strategic plan with the FSO conversion. Focus on our drilling campaign at Etame and continued evaluation of organic and inorganic opportunities.” Commented George Maxwell, VAALCO’s Chief Executive Officer. 

You also might want to read “VAALCO Energy Provides Update on Etame Field Reconfiguration and FSO Deployment”

Currently, VAALCO is the operator of the EtameMarin block, located offshore Gabon. It produces 125 million barrels of crude oil, making the company an established operator within the region. From this operation, they are holding 63.6% of participation.

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