VAALCO Energy, a prominent player in the global oil and gas industry, has revealed its strategic expansion plans for Egypt's oil sector during a high-level meeting with Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi. The meeting, attended by key VAALCO executives including Chief Operating Officer Thor Pruckl, Egypt Country Manager Iman Hill, and Executive Vice President of Government Relations Tawfiq Nassif, focused on enhancing production capabilities and exploring new opportunities within Egypt's oil-rich regions.

Minister Badawi reaffirmed Egypt's commitment to fostering strong relationships with international oil companies, emphasizing the importance of continuous dialogue and collaboration. He highlighted the government's support for companies like VAALCO in their efforts to expand operations and attract new investments. Badawi also stressed the need to intensify research, exploration, and development activities, aiming to enhance operational efficiency and reduce production costs through the adoption of cutting-edge technologies.

Thor Pruckl, COO of VAALCO, underscored the significance of Egypt as a key area for the company's growth, particularly in the Eastern and Western Desert concession areas. Pruckl pointed out that the acquisition of assets from Canadian company TransGlobe has positioned VAALCO to capitalize on production from brownfields, which offers considerable potential for investment and expansion in the near future.

VAALCO’s expansion plans are part of a broader strategy that includes significant developments across its global portfolio. The company recently reported strong operational and financial performance, bolstered by strategic acquisitions, including assets in Côte d'Ivoire. CEO George Maxwell highlighted the company’s focus on generating cash flow to fund future projects, while maintaining shareholder returns through dividends.

In Egypt, VAALCO has been actively working to enhance production throughout 2024, with a series of planned workovers and interventions, including the successful recompletion of the K-81 well. The company also completed several workover recompletions in the second quarter, with more underway, demonstrating the economic viability of these operations.

Looking ahead, VAALCO’s expansion strategy in Egypt aligns with its global growth objectives, which include major projects in Gabon and Côte d'Ivoire, scheduled for 2025. The company remains committed to leveraging its strong operational cash flow to support these initiatives while continuing to return value to shareholders.

As VAALCO continues to solidify its presence in Egypt, the collaboration with the Egyptian government is expected to play a crucial role in achieving the company’s long-term goals in the region.

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