A major offshore discovery by a Singapore-based energy firm is reshaping expectations for West Africa’s Sèmè basin after tests confirmed a 950-million-barrel oil reservoir that could change the economics of a field long considered marginal.
Benin’s dormant offshore oil sector is showing signs of revival after Akrake Petroleum, an indirect subsidiary of Singapore-listed Rex International Holding, drilled the AK-2H well through 1,405 metres of reservoir and identified about 950 metres of oil-saturated sandstone in the Sèmè Field.
Advanced Logging While Drilling (LWD) tools were used to ensure the well intersected only oil-bearing zones. Early petrophysical data show porosity above 19% and oil saturation exceeding 70%, early indicators of commercial potential, as seen on Business Insider Africa.
To maximise production, the well has been equipped with autonomous inflow control valves (AICVs) to manage sand and limit water production, while a downhole Electrical Submersible Pump (ESP) is being installed to enhance flow.
The mobile offshore production unit (MOPU) and floating storage and offloading (FSO) unit are also nearing completion ahead of an expected production restart.
According to a statement issued by Rex International Holding, the Sèmè redevelopment points to broader economic and fiscal benefits for Benin and West Africa, including increased domestic energy supply, export revenues and job creation.
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The Sèmè Field previously produced about 22 million barrels of oil between 1982 and 1998 before operations were shut due to low prices and technical challenges.
It is now being redeveloped under a production-sharing contract, with Rex holding a 76% stake, the Beninese government 15%, and Octogone Trading 9%.
Estimates suggest Phase 1 could deliver initial production of around 15,000–16,000 barrels per day, creating an incremental revenue stream for the state and supporting local industry.
Benin has not reported significant oil output in recent decades, recording zero crude production in 2024 according to Energy Information Administration data, a sharp contrast with neighbours such as Nigeria, Africa’s largest oil producer with output in the millions of barrels per day.
As African producers increasingly develop both legacy and frontier fields, Benin’s Sèmè revival, backed by technology, capital and regional cooperation, could position the country as a modest but strategic upstream player, helping diversify West Africa’s energy landscape and reinforce its presence in the Gulf of Guinea.
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Image Credit: Oil News Kenya
