Vaalco Steps Up Gabon Drilling as Etame Field Faces Production Decline

Vaalco Energy has brought a new gas well online and drilled an appraisal well at its offshore Etame field in Gabon, as the U.S.-based oil producer works to extend the life of the mature asset. The company announced the results of the two operations on 5 August, as part of a drilling campaign launched late last year. The first well is now producing gas for the Etame facilities, replacing diesel that was previously transported by ship to power the operation. Vaalco expects the change to reduce costs and improve the performance of its existing wells.

“This will reduce costs and should improve the performance of the existing wells,” Chief Executive Officer George Maxwell said.

The second well is targeting a previously underexplored reservoir zone. If the appraisal confirms commercially viable volumes, Vaalco plans to move directly to drilling a production well. The latest activity follows an earlier result from the campaign. In June 2026, Agence Ecofin reported that one of Vaalco’s wells produced more than 8,000 barrels of crude oil per day, giving the company its strongest production result in Gabon in several years.

Pressure on a Mature Oil Field

Vaalco is drilling at Etame as production from the field continues to decline. Gabonese production fell from 19,000 barrels per day in 2024 to 14,300 barrels per day in 2025. According to GlobalData, around 90% of Etame’s recoverable reserves have already been produced, with the field expected to reach its economic limit by 2029. That leaves Vaalco with a limited window to extract more value from the asset. New wells, improved recovery and lower operating costs are becoming increasingly important as the company works to slow the decline. Vaalco expects total production across its African portfolio to average between 20,100 and 22,400 barrels per day in 2026, according to its first-quarter results. The company holds a 63.6% operating interest in the Etame block.

Opportunities for Local Suppliers

Extending Etame’s productive life also has implications for businesses operating around Gabon’s oil industry. Vaalco held a local supplier forum in Port-Gentil in July, bringing together about 100 Gabonese entrepreneurs to explain its procurement requirements, tender process and supplier registration procedures.

Continued activity at Etame could give qualifying local businesses more opportunities to supply the field, particularly in areas such as logistics, maintenance, engineering and other oilfield services. The supplier engagement also gives local companies a clearer understanding of what they need to meet before competing for contracts linked to Vaalco’s operations.

Gabon’s Wider Production Challenge

The pressure on Etame reflects a wider issue for Gabon’s oil industry. National production has fallen from more than 350,000 barrels per day in the 1990s to about 216,000 barrels per day in January 2026, according to OPEC data. Much of Gabon’s production still comes from fields discovered several decades ago. As these assets mature, operators face the challenge of maintaining output while controlling the cost of extending their productive lives.

For Vaalco, the latest drilling campaign is an attempt to do both at Etame. The new gas well could reduce the cost of running the field, while the appraisal well could identify additional oil reserves that support production beyond the existing decline profile.