This confirms a 10-year extension to the three Exclusive Exploitation Areas under the PSC, which VAALCO operates in partnership with Addax Petroleum, Sasol and PetroEnergy Resources, with two additional five-year options.
Terms also allow for future investments to the benefit of the contractor parties and the government through further development of the resource potential within the Exploitation Areas.
Within two years of the amendment coming into force, a drilling program will begin to drill two development wells and two appraisal wells, coupled with technical studies.
In addition, VAALCO has agreed to increase its commitment to corporate social responsibility projects in Gabon.
According to the company’s CEO Cary Bounds, Etame has produced more than 100 MMbbl of oil to date. “We are now ready to move forward with our 2019 development and appraisal drilling program.”