Image: Windfallengprojectsltd / Wikimedia Commons, CC BY-SA 4.0
Akrake Petroleum Benin plans to sell a first cargo of 250,000 barrels from the offshore Sèmè field in October 2026, but output of about 3,000 barrels a day is below the 5,000 to 6,000 barrels initially projected.
Benin is preparing to sell crude from the offshore Sèmè field for the first time in 28 years, Agence Ecofin reported on 23 September 2026 in an article titled “Bénin : 28 ans après, les derniers barils de bruts extraits la production pétrolière se prépare à la commercialisation”. The operator, Akrake Petroleum Benin, plans a first cargo of 250,000 barrels in October 2026.
Ownership and operations
Under a contract signed in December 2023, Singapore-based Rex International Holding holds 76% of the Sèmè field in Block 1, the State of Benin 15% and the local company Octogone Trading 9%. A drilling campaign started in August 2025. The horizontal well AK-2H, which targets the H6 reservoir, was completed in February 2026 and production began in March 2026. The field uses the mobile offshore production unit Stella Energy 1 and the floating storage and offloading unit Kristina.
Agence Ecofin reported that current output is about 3,000 barrels a day, well below initial projections of 5,000 to 6,000 barrels a day. Proven and probable reserves are estimated at 10.9 million barrels. In February 2026, Lime Petroleum Holding, Rex International’s Norwegian holding company, acknowledged that drilling cost overruns and delays had led to negative equity.
History
Sèmè produced about 22 million barrels between 1982 and 1998 under the Norwegian operator Saga Petroleum, before it was shut when crude prices fell to US$14 a barrel. Agence Ecofin put Brent at about US$98 a barrel at the time of its report.
Why it matters
The first cargo turns Benin’s 15% interest into cash for the first time and puts the 2023 contract’s marketing provisions to work. For the state and for Octogone Trading, the questions are how lifting entitlements are allocated among partners, whether each partner lifts in kind or the operator markets on behalf of all, and how cargo proceeds are applied to cost recovery. Lower-than-planned output lengthens cost recovery, which delays the point at which the state’s share of profit oil increases.
The financial position of the operator’s parent is also relevant for counterparties. Negative equity at the holding company level raises credit questions for buyers, service contractors and the state as a joint venture partner. Offtakers are likely to seek prepayment structures or letters of credit, and contractors should review parent guarantees and step-in rights. For the Beninese state, the joint operating arrangements should be checked for default provisions if a partner fails to meet cash calls on further wells.
The restart is also a test case for small, previously abandoned fields in West Africa. Its commercial results will influence whether host governments offer similar marginal-field terms elsewhere.
Leave a Reply