VAALCO Energy on Monday announced it has been given the green light to develop, operate and begin producing from the discovery in Venus-Block P project offshore Equatorial Guinea.
The U.S.-based independent energy company said all partners have signed the final documents and the Government of Equatorial Guinea has approved the joint operating agreement (JOA) related to the previously approved plan of development (POD). The Block P production sharing contract (PSC) provides for a development and production period of 25 years from the date of approval of the POD.
George Maxwell, VAALCO’s CEO, said, “With final documents for Block P signed, we are very excited to proceed with our plans to develop, operate, and begin producing from the discovery in Block P offshore Equatorial Guinea over the next few years. We will now proceed with our front-end engineering design (FEED ) study. We anticipate the completion of the FEED study will lead to an economic final investment decision or “FID” which will enable the development of the Venus POD.
The company said it plans to provide more information in its first quarter 2024 earnings in early May.
“Over the past two years, we have greatly diversified our portfolio, which has expanded our ability to generate operational cash flow, all while growing our cash position and remaining bank-debt free,” Maxwell said. “The Block P development will further enhance our portfolio by adding yet another strong producing asset to VAALCO’s global portfolio.”
