Rex International Holding’s subsidiary, Akrake Petroleum SA, has taken a significant step towards expanding its operations in West Africa by securing a production sharing contract (PSC) for the Sèmè Field in Block 1, offshore Benin. The agreement, signed with the government of Benin, gives Akrake a 76% working interest in the block, with the remaining stakes held by the Benin government (15%) and Octogone Trading, a West African energy and commodities company (9%).
The Sèmè Field, located in shallow waters off Benin’s coast, was first discovered in 1969 by Union Oil and initially developed by Saga Petroleum. The field produced around 22 million barrels of oil between 1982 and 1998, before production was halted due to low oil prices at the time. With new technology and expertise, Akrake plans to redevelop the field, marking a fresh chapter in its history.
Akrake will use Rex’s proven low-cost production system, which includes a jack-up Mobile Offshore Production Unit (MOPU) and a Floating Storage Unit (FSO), to restart production. The field will be further developed with modern horizontal drilling techniques to enhance oil recovery and control water influx, maximising the output from the reservoir.
Recent explorations, conducted between 2014 and 2015, confirmed deeper oil and gas reserves, opening the door for future expansion. To ensure an accurate assessment of the field’s potential, an independent evaluation of the reserves will be conducted alongside early production drilling. If further reserves are identified, these can be developed using the new infrastructure to be installed in the field.
Dan Broström, Executive Chairman of Rex International, expressed optimism about the project, emphasising the importance of diversification for the company’s growth strategy. “We have been actively seeking new assets in various regions to reduce geographical risk, boost production, and replenish our reserves. The terms for the Block 1 PSC provide a favourable foundation for restarting production in the near term.”
Broström also highlighted the company’s strong partnership with local stakeholders. “We have developed a positive relationship with the Benin authorities and Octogone Trading, and we look forward to working together in the Block 1 partnership. We’ll draw on the geological and operational expertise of our teams in Norway and Oman, while establishing a skilled local team to file a Field Development Plan in 2024. Additionally, we’ll explore the field’s untapped oil and gas potential, particularly in gas reserves.”
With this new venture, Rex International looks set to strengthen its presence in West Africa, unlocking the potential of the historic Sèmè Field while contributing to the region’s energy sector development.