US independent oil company VAALCO Energy is expanding its presence in Côte d'Ivoire by securing a majority interest in block CI-705 and a 60% operating interest in block CI-40, including development of the Kossipo field. This transaction is a strategic step for VAALCO in the West African basin, with development plans scheduled for the second half of 2026.
Under the agreement, VAALCO holds a 70% working interest and a 100% paying interest in block CI-705 through a commercial carry arrangement. In block CI-40, the company is acquiring a 60% working interest and will assume the operator role for the Kossipo field. Petroci, Côte d'Ivoire's national oil company, retains the remaining interests in both blocks. VAALCO invested $3 million to secure its position in CI-705.
Block CI-705, covering 2,300 km² in water depths of up to 2,500 metres in the Tano basin, lies approximately 60 km west of Eni's Calao discovery. Only three wells have been drilled there to date, revealing significant untapped potential. Block CI-40 contains the Kossipo field, southwest of Baobab. The latter is assessed at 102 million barrels of 2C resources, with up to 293 million gross barrels in place. Historical appraisal wells demonstrated flow rates exceeding 7,000 barrels a day.
VAALCO plans to submit a Field Development Plan in the second half of 2026. A floating production, storage and offloading vessel (FPSO), currently being refurbished, is expected to return to the site by the second quarter of 2026 to serve as a processing hub for the Baobab and Kossipo fields. Connecting future wells to surrounding infrastructure will accelerate the time to first oil production.
This acquisition gives VAALCO greater control over drilling design, capital allocation and development timelines, positioning it as a leading upstream operator in Côte d'Ivoire. It improves visibility over reserves, reduces development risk through faster execution and provides access to a growing hydrocarbons hub with established infrastructure. Regionally, the transaction promotes cooperation in West Africa, potentially sharing infrastructure, expertise and investment with emerging producers such as Senegal and Mauritania.
The expansion comes as Côte d'Ivoire emerges as a new hydrocarbons frontier in West Africa, attracting international investment to develop its promising offshore resources. VAALCO, already active in several African countries, is thereby consolidating its diversification and sustainable growth strategy in the energy sector.