VAALCO Energy Inc. will replace the existing floating production, storage, and offloading unit (FPSO) with a floating storage and offloading vessel (FSO) for Etame field, offshore Gabon.
The Cap Diamant, a double-hull crude tanker built in 2001 that is being re-engineered as the new FSO, arrived at a shipyard in Bahrain in late February for the final modifications and certifications. Sea trials are expected to start in late June before being mobilized to Gabon.
Compared to the current FPSO agreement, the new FSO will reduce storage and offloading costs by almost 50%, increase effective capacity for storage by over 50%, and is expected to lead to an extension of the economic field life, resulting in a corresponding increase in recovery and reserves at Etame, the company said.
VAALCO anticipates that all associated engineering, long-lead equipment, and significant contracts are proceeding in-line with project timelines and expected delivery schedules for deployment of the FSO in third-quarter 2022. Field reconfiguration activities are expected to begin in March, as planned.
Current total field level capital conversion estimates are $40-50 million (gross). This capital investment is projected to save about $20-25 million/year (gross) in operational costs through 2030.
Etame Marin block is in Congo basin about 32 km off the coast of Gabon. The license area is spread over five fields covering a total area of about 187 sq km. VAALCO is operator in Etame Marin field (63.6%) with partners Addax Petroleum Co. (33.9%) and PetroEnergy Resources Corp. (2.5%).
