- VAALCO Energy (NYSE:EGY) has restarted production at the Baobab field offshore Côte d’Ivoire after completing the FPSO refurbishment
- The vessel returned in early Q2 2026 following a nine-month upgrade and has been successfully reconnected to field infrastructure
- Production is currently running from four wells, with additional wells expected to come online soon and performance meeting expectations
- A Phase 5 drilling program planned for the second half of 2026 could deliver meaningful production growth through new wells and workovers
VAALCO Energy (NYSE:EGY) announced that production has resumed at the Baobab field on the CI-40 block offshore Côte d’Ivoire, marking the completion of a major refurbishment program for the Baobab Ivoirien floating production storage and offloading (FPSO) vessel.
The restart represents a key milestone for the company’s West African operations and positions the asset for future development activity.
The FPSO had ceased hydrocarbon operations in January 2025 as part of a planned upgrade initiative. The vessel subsequently underwent a nine-month refurbishment program in Dubai, aimed at extending its operational lifespan and enhancing reliability. Following the work program, the FPSO returned to Côte d’Ivoire in early second quarter 2026, where it was successfully moored and reconnected to existing field infrastructure.
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Production has now resumed from four wells at the Baobab field. VAALCO indicated that the remaining three producing wells are expected to be brought back online in due course. According to the company, early performance from the restarted wells is in line with internal expectations, suggesting stable reservoir performance and operational readiness after the extended downtime.
The refurbishment of the FPSO is a central component of VAALCO’s longer-term strategy for the Baobab asset. By upgrading the vessel’s capabilities, the company aims to support a more extensive development program and sustain production levels over a longer horizon. Management has highlighted that the improvements will enable the FPSO to accommodate increased throughput and operational demands associated with future drilling campaigns.
Looking ahead, VAALCO plans to initiate a Phase 5 drilling program at the Baobab field in the second half of 2026. The program is expected to include four new production wells, two to three injection wells, and two workover operations. These activities are designed to enhance recovery rates and stabilize output from the main Baobab reservoir.
The company noted that the planned drilling campaign has the potential to deliver “meaningful additions” to production, although specific output forecasts were not disclosed. The combination of resumed production and upcoming drilling activity is expected to contribute to VAALCO’s overall production profile and cash flow generation.
“We have the CI-40 block license extended through 2038 and believe that there is significant development drilling upside at Baobab. In early 2024, we had no assets in Côte d’Ivoire and now we have developed a strong position with development and exploration potential,” VAALCO’s CEO, George Maxwell, stated in a media release. “We are at a critical junction, with successes in the Gabon drilling campaign and the Baobab field returning to production, and we believe that the remainder of 2026 will be very impactful. We remain focused on execution and driving meaningful growth through our organic capital programs that we believe will translate into value for our shareholders in 2026 and beyond.”
The Baobab field has been a core asset within VAALCO’s portfolio in Côte d’Ivoire, and the successful restart underscores the company’s operational execution capabilities. For investors, the restart reduces uncertainty around the timing of production recovery following the FPSO upgrade and signals that the asset is ready to transition into its next phase of development.
While the immediate focus remains on ramping up output from existing wells, the broader investment case for Baobab is increasingly tied to the success of the Phase 5 drilling program. The ability to efficiently bring new wells online and improve reservoir management through injection and workover activities will be key determinants of future production growth.
Overall, the return of the Baobab field to production represents a significant operational achievement for VAALCO and reinforces the strategic importance of its Côte d’Ivoire assets within its portfolio. Investors are likely to monitor upcoming drilling milestones and production trends closely as the company advances its development plans through the remainder of 2026.
Founded in 1985, VAALCO Energy Inc. is an independent energy company that engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, Cote d’Ivoire, Equatorial Guinea, Nigeria, and Canada.
VAALCO Energy stock (NYSE:EGY) opened trading more than 3 per cent higher at US$5.53 and has risen more than 45 per cent since this time last year.