VAALCO to advance Venus development with POD approval

VAALCO Energy is moving to develop the Venus discovery in Block P with the Sept. 16 plan of development approval from the Government of Equatorial Guinea. First oil is expected in mid- to late-2026 the operator said in a Sept. 26 release.

Block P covers an area of 1,253 sq km in the Rio Muni basin. The Venus discovery was made in 2005 by Devon Energy.

Upon execution of final documents, VAALCO will spud the first development well in early 2024, acquire, convert, and install production infrastructure over the next 3 years, and spud an additional development and a water injection well in 2025-26. Venus field activities are expected to add 23.1 million bbl of oil of 2P gross reserves.

Based on results from the initial discovery well and reservoir modeling, the operator expects production from the field to reach about 15,000 gross b/d of oil upon completion of the two development wells and injector well.

Preliminary estimated project cost for the development wells, injection well, and related production infrastructure is about $310 million.

The production sharing contract provides for a development and production period of 25 years from the POD approval date. Future production upside potential exists through the Europa discovery development and exploration upside potential exists with Saturno and Southwest Grande prospects, the company said as part of the accompanying investor presentation Sept. 26.

VAALCO is operator (80%) of the Venus development with partner Guinea Ecuatorial de Petroleós Co. (GEPetrol) (20% carried interest). The POD for the discovery was submitted in July 2022 without the other Block P joint venture owner, Atlas Petroleum International Ltd., which opted not to participate.