Vaalco Energy Secures Revolving Credit Facility for Investment Programs

Houston-based energy player Vaalco Energy has recently announced its entrance into a six-year revolving credit facility to support its planned investment programs in the coming years. The facility, initially valued at $190 million and extendable up to $300 million, is led by the Isle of Man branch of the Standard Bank of South Africa, along with financial partners such as Rand Merchant Bank, the Mauritius Commercial Bank, and Glencore Energy UK.

The new credit facility replaces Vaalco’s previous undrawn revolving credit line provided by Glencore and is secured against the company’s assets in Gabon, Egypt, and Côte d’Ivoire.

“Closing this new credit facility will supplement our internally generated cash flow and cash balance to assist in funding our robust organic growth projects,” stated Vaalco’s CEO, George Maxwell. The facility will enable the company to meet short-term capital funding needs as it executes significant growth projects across its assets in the upcoming years.

Vaalco intends to utilize the credit facility to support its planned investment programs and projects across its assets. The company will see a reduction in interest rates following the completion of the dry dock refurbishment project for the FPSO vessel Baobab Ivoirien MV10 in Côte d’Ivoire.

The vessel’s upgrade will facilitate future drilling and development activities, with operations expected to resume in 2026. Vaalco plans significant development drilling that year, aiming for production increases from the Baobab field in the Baobab CI-40 block and potential future development of the Kossipo field on the same license.

Recently, Vaalco Energy acquired a majority stake in the CI-705 block offshore Côte d’Ivoire, which is believed to hold both oil and gas prospects.