VAALCO Energy Inc. announced the successful installation of the Floating Storage and Offloading vessel (“FSO”). And, the strong third quarter 2022 production was above the high-end of quarterly guidance and sales volumes.
Installation of the Floating Storage and Offloading vessel (“FSO”)
Related to the FSO and field reconfiguration, VAALCO successfully completed: diving connections, infrastructure, and reconfigurations to the Teli FSO.
Also, they disconnected all production lines from the Petroleo Nautipa Floating Production, Storage and Offloading unit (“FPSO”). They lifted export oil from the FPSO of 300,510 barrels, followed by lifting from the FPSO of 275,817 barrels.
George Maxwell, VAALCO’s Chief Executive Officer, commented, “We are delighted to have successfully delivered this highly complex, full field reconfiguration, maintenance turnaround, and upgraded FSO installation, as planned and on time. Installation of the FSO vessel was completed despite a difficult global supply chain environment and is a testament to the dedication of our workforce and partners who helped complete the project, underlining VAALCO’s status as a quality Operator. The new FSO provides us with additional flexibility and has an effective capacity for storage that is 50% larger than our relinquished FPSO. It also reduces our expected storage and offloading costs by 50%, which should lead to an extension of the economic field life, resulting in a corresponding increase in recovery and reserves at Etame”.
VAALCO´s financial results
“Additionally, we reported very strong VAALCO standalone third quarter 2022 production and sales volumes above the midpoint of our guidance ranges. Production for the third quarter was approximately 9,150 net BOPD and sales volumes were approximately 7,952 net BOPD. Our team worked tirelessly to ensure that we maximized our production and sales in the third quarter. We completed three liftings during the quarter, shortly before the decommissioning of FPSO. The team successfully overlapped the maintenance turnaround with the field reconfiguration to minimize downtime and deliver operating efficiencies. We continue to execute on our strategy and remain focused on generating meaningful free cash flow to enhance shareholder value”.
VAALCO´s financial results will not include the production volumes, associated revenues, and expenses until post-closing in the fourth quarter of 2022. Due to a strategic combination with TransGlobe Energy did not close until October 14, 2022. However, the Company said that the third quarter incurred most of the transaction costs. Additionally, they included the costs associated with the relinquishment of the FPSO.
It can be of your interest: Energy Capital Magazine, October Edition.
About VAALCO
VAALCO founded in 1985 with base in Houston, US. Is an independent energy company with production, development and exploration assets in the West African region.
The Company is an established regional operator, producing over 126 million barrels of crude oil.
