VAALCO Energy EGY, a U.S.-based independent exploration and production firm, has outlined its plans related to oil and gas development at Côte d’Ivoire and Gabon in Africa. During its first-quarter 2025 earnings release, the company mentioned multiple plans for oil and gas developments, including drilling activities at Block CI-40 in Côte d’Ivoire and an extensive drilling campaign in Gabon.
EGY’s plans in Côte d’Ivoire involve the refurbishment of the floating production storage and offloading vessel (FPSO) at the Baobab field in Block CI-40. The FPSO Baobab will undergo a planned dry dock refurbishment in a shipyard in Dubai. The vessel ceased production on Jan. 31, 2025. The final crude oil was taken out from the vessel in February 2025, following which the FPSO departed the field.
FPSO Baobab Refurbishment Plans
The FPSO was wet towed to the shipyard in Dubai, where the refurbishment campaign will be carried out. The dry dock refurbishment is crucial for extending the economic life of the Baobab field, allowing the vessel to continue producing oil from the field efficiently. The company is also preparing for a drilling campaign in Côte d’Ivoire in 2026. The FPSO refurbishment project is aimed at augmenting the production from the Baobab field, supporting production until 2038 or even longer. This shall help EGY continue producing profitably from the field for a longer period.
Côte d’Ivoire: Strategic Developments in Block CI-40
The Baobab field is located 30 kilometers offshore Côte d’Ivoire. The water depth at the site ranges between 900 meters and 1,300 meters. Canadian Natural Resources International (“CNRL”) is the operator of the field, holding 57.61% working interest. The other partners in the field include VAALCO Energy, which holds a 27.39% stake, and the national oil company of Côte d’Ivoire, Petroci Holding, which owns the remaining 15% stake.
EGY’s plans include the start of a significant development drilling campaign in 2026 at Côte d’Ivoire. Following this development drilling campaign, FPSO Baobab will be returned to service in the Baobab field, with the potential for increased hydrocarbon production from the field. VAALCO’s development plans for the Kossipo field are also in the cards, which is part of the Block CI-40.
Expansion Into Block CI-705
VAALCO Energy also entered into a farm-in agreement in March 2025 for Block CI-705. The company has invested millions to acquire operatorship of this block, holding a 70% working interest alongside a 100% paying interest (through a commercial carry agreement). Block CI-705 is located in the prolific Tano basin, approximately 70 kilometers west of Block CI-40 and 60 kilometers to the west of Eni’s Calao discovery.
Gabon 2025/2026 Drilling Campaign
VAALCO Energy has reported strong performance across its assets in Gabon. The company has announced that it is gearing up for the 2025/2026 drilling program in the country. The drilling campaign is expected to start in the third quarter of 2025.
The drilling program in Gabon involves drilling several development wells. It also covers appraisal and exploration wells, along with workovers for existing wells. Furthermore, the plan includes the option to drill additional wells to raise production. The company has contracted a rig from Borr Drilling to carry out the 2025/2026 drilling program. The upstream player plans to drill wells on the Etame and the Southeast Etame North Tchibala (SEENT) platforms.
Additionally, the company expects to re-drill some existing wells and perform multiple workovers at the Ebouri field. These efforts aim to restore production from wells that were previously shut in and regain access to reserves removed from the company’s proved reserves due to the presence of hydrogen sulfide — a corrosive gas that poses hazards to the oil extraction process.
EGY’s Zacks Rank and Key Picks
EGY currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the energy sector are Diversified Energy Company plc DEC, Expand Energy Corporation EXE and RPC, Inc. RES, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Diversified Energy Company is an independent oil and natural gas producer in the United States. The company is primarily engaged in the production, transportation, and marketing of natural gas and natural gas liquids. The rising demand for natural gas as a cleaner-burning fuel and an uptick in the commodity’s prices are expected to positively impact the company’s bottom line.
Expand Energy is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. Natural gas is expected to play an increasingly important role in the energy transition journey. Expand Energy is poised to benefit from the rising demand for natural gas as a cleaner-burning fuel. The recent rise in natural gas prices is also anticipated to positively impact EXE’s profitability.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. RPC is strongly committed to returning value to shareholders through consistent dividends and share buybacks, making it an attractive choice for investors looking to earn steady returns.
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