Vaalco Energy Sees Africa as Next Big Opportunity in Oil and Gas

Vaalco Energy is investing in African oil and gas assets that offer established infrastructure, production-sharing contracts, and opportunities created by major energy companies divesting mature positions. The company sees Africa as a region with underinvested basins, existing export routes, and growing domestic energy demand.

Ron, a VAALCO representative, said that the company's approach is to focus on production-sharing contracts, which can align government and contractor interests while providing a framework for recovering capital investments through production barrels. He noted that such contracts have cost-recovery ceilings of 80% in Gabon and Côte d'Ivoire, with profit-oil shares of 45% and 53%, respectively.

Vaalco's core operated asset is the Etame field offshore Gabon, where the company has held an interest since 2002. The field continues to produce approximately 17,000 barrels per day and has cumulatively produced about 150 million barrels of oil. After Sasol elected to sell its working interest in the Etame license in 2021, VAALCO increased its position in the asset.