Benin Republic is preparing to bring crude oil production back on stream this month as final well completion works begin at the offshore Seme field, signalling an end to weeks of delays that had pushed the project behind schedule.
The restart, led by Singapore-based Rex International Holding, comes after technical drilling challenges forced a shift in timelines and production expectations, but with key infrastructure already in place, operators now appear positioned to deliver first oil before the end of January.
Completion Works Begin as Restart Nears
Rex International confirmed that completion activities have commenced on a horizontal production well at the shallow-water Seme field, located about 15 kilometres offshore Benin Republic. The work is being carried out on the AK-2H well and is expected to pave the way for crude output to resume later in the month.
Initial production is likely to fall below the previously announced target of 15,000 barrels per day, as that figure was based on output from two horizontal wells. With only AK-2H set to produce in the near term, drilling of the second horizontal producer and a vertical appraisal well will be suspended once the well comes on stream, following the expiry of the Borr Gerd jack-up rig contract.
Drilling Issues Triggered Delays and Financial Adjustments
Akrake Petroleum, Rex’s indirectly held subsidiary and operator of the Seme field with a 76 per cent stake, had originally planned to start production in December. However, drilling operations encountered unstable shale layers above the target reservoir, causing tools to become stuck and necessitating redrilling.
The resulting delays were described by Rex as “significant” and prompted broader adjustments. In a separate statement, the company said its direct subsidiary had asked bondholders to defer interest payments due this month until March, citing the impact of the project delays on cash flow.
Facilities Ready as Operator Eyes Further Wells
Despite the setbacks, Rex said the mobile offshore production unit and the floating storage and offtake vessel required for the Seme field are already on location and ready for production.
Looking beyond the restart, the operator plans to source a new rig to complete the suspended second producer and appraisal wells. Rex also aims to drill a third producing well as part of a fresh drilling campaign later this year, a move that could lift output once full field development resumes.
For Benin Republic, the Seme restart represents a cautious but meaningful step towards restoring offshore crude production, with the coming weeks expected to determine how quickly the field can regain operational stability.