In response to the recent media speculation, Vaalco confirmed its ongoing discussions for the proposed acquisition of Svenska Petroleum Exploration, which owns a 27.39% interest in Block CI-40, offshore Cote d’Ivoire
Vaalco in talks to acquire Svenska Petroleum Exploration. (Credit: FUJIDUDEZ on Unsplash)
Texas-based hydrocarbon explorer Vaalco Energy has confirmed its ongoing discussions with the owners of Svenska Petroleum Exploration, for the potential acquisition of Svenska.
Vaalco, in response to the recent media speculation, made a statement confirming its talks to buy Svenska.
Svenska is a Sweden-based offshore oil company, indirectly owned by Sheikh Mohammed H. Al-Amoudi, through its holding company Petroswede.
The Swedish oil company owns a 27.39% interest in Block CI-40, offshore Cote d’Ivoire
Vaalco intends to fund the proposed acquisition with cash on hand.
The proposed transaction is subject to several customary closing conditions, including regulatory and government approvals.
Vaalco Energy in its statement said: “There can be no assurance that a definitive agreement for the possible acquisition will be entered into or, if a definitive agreement is entered into, that the possible acquisition will proceed to completion, and the Company will issue a further statement as appropriate.”
The Block CI-40 is operated by Canadian Natural Resources International (CNR) with a 57.61% stake while Petroci holds the remaining 15% interest.
Svenska holds a production net working interest of around 4,500 barrels of oil equivalent (boe) per day in the block, covering the Baobab field.
The Baobab field came online in August 2005, with production from ten horizontal wells supported by three water injectors.
The produced fluids were co-mingled and transported through flow lines to floating production, storage and offloading (FPSO) vessels moored in more than 900m of water depth.
The FPSO Baobab Ivoirien MV10, owned and operated by MODEC, can process 70,000 bpd of oil, 75 million cubic feet of natural gas, and 100,000bpd of water injection.