Vaalko Energy is re-evaluating development plans for its long-dormant Venus oil discovery offshore Equatorial Guinea, with the choice of floating production facility being a central consideration.

Discovery and Original Development Plan

The Venus discovery, located in shallow water in Block P, was made in 2005 and holds an estimated 23 million barrels of oil. A government-approved $310 million plan of development was centered on using a Floating Production, Storage and Offloading (FPSO) vessel, which was targeted to begin production in 2026.

Re-evaluation and Alternative Concepts

Recent engineering studies have prompted a serious reconsideration of the FPSO plan. In an effort to reduce both risk and cost, the company explored an alternative concept involving a converted jack-up rig to serve as a Mobile Offshore Production Unit (MOPU). This MOPU was envisioned to be installed on the continental shelf and would also drill the necessary development wells—two producers and one water injector. However, this proposal has been largely set aside due to significant technical challenges, particularly in drilling the development wells, especially the water injector with its required long lateral, from the MOPU location.

Current Development Focus

The company is now focused on a different development scenario. This involves drilling the complex wells from a drillship and tying them back to an FPSO via subsea wells. In this configuration, the water injector would be a conventional vertical well. From a drilling perspective, this approach is considered to have "far better" economics as it would eliminate risk and reduce drilling times, despite higher day rates for the equipment.

Critical Role of Water Injection and Production Outlook

The "sweep efficiency" of the injected water within the reservoir is identified as critical to achieving the estimated recovery factors and production profiles for the Venus field. The company has previously estimated a production rate of approximately 15,000 barrels per day from the discovery.

Ongoing FPSO Evaluation

The current study is focused on determining if an FPSO remains the best production solution. The key considerations are whether a unit can be secured at a reasonable price and if it can efficiently evacuate the produced oil. The company notes that there are currently many FPSO units available on the market at a reasonable cost, which is a positive factor in this ongoing evaluation.

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