In the Gulf of Guinea, oil producers have steadily multiplied. Nigeria paved the way, followed by Niger, Ghana and, more recently, Côte d’Ivoire. Benin, however, has spent 26 years on the sidelines after nearly 16 years of exports that ended in 1998. The country is now preparing to restart production. Here is how that return is taking shape.

1968: Oil Discovery

The story begins off Benin's coast in the Gulf of Guinea. According to a World Bank document published in March 1984, Union Oil Company of California identified an offshore field near Seme in 1968. While still a geological discovery, it placed the country among areas under active oil exploration. For the recently independent Benin, official recognition of the Seme field created the prospect of oil production and future budget revenues.

1979: Offshore Development Agreement

The year 1979 marked a shift from exploration to development. A World Bank document published in February 1990 indicates that after several years of technical studies, Benin's authorities reached an agreement with Norway, then expanding its offshore operations. Saga Petroleum was designated to develop the Seme field under a service contract governing the production phase. Benin thus began commercial-scale offshore production with support from an operator experienced in the North Sea.

1982: Production Begins

After several years of preparation, production started in 1982. The Seme field installations came onstream and initial volumes were extracted. According to data from Benin's Ministry of Mines, initial output reached around 8,000 barrels per day. Production generated the first public oil revenues, placing the country among crude-exporting nations.

1985: Contract Termination and Transfer to Pan Ocean Oil

In 1985, Benin's authorities terminated the contract with Saga Petroleum. On August 27, a presidential decree formalized the decision and transferred operatorship of the Seme field to U.S. company Pan Ocean Oil (Panoco). Contemporary sources cite contractual and financial disputes. The transition triggered a period of litigation that affected production stability.

December 31, 1998: Production Halts

According to the U.S. Geological Survey (USGS) annual report on Benin's mineral industry in 1998, "oil production from Seme ceased in December 1998," and the government was examining options for removing installations and possible future development.

After 16 years of activity and cumulative production estimated at roughly 22 million barrels between 1982 and 1998, according to the same source, the field became economically unviable. With crude prices around $14 per barrel and aging offshore infrastructure, authorities opted to suspend operations. Benin thus exited the ranks of oil-producing countries.

2004: SAPETRO's Attempted Revival

After six years of interruption, the Seme field attracted a regional operator. According to information reported by the Nigerian press on December 7, 2004, South Atlantic Petroleum (SAPETRO), founded by General Theophilus Danjuma, former Nigerian army chief of staff, obtained a production-sharing contract for Block 1. The agreement aimed to redevelop the mature field, and the operator announced plans to use techniques suited to aging offshore reservoirs.

2014: Technical Progress Stalled by Market Conditions

Drilling operations resumed on Block 1. According to a statement released by SAPETRO in March 2014, work confirmed the presence of hydrocarbons in deeper formations. But market conditions deteriorated sharply. According to historical data from the Energy Information Administration (EIA), Brent crude fell from around $115 in June 2014 to under $60 in December, before dropping below $30 in early 2016. This price collapse undermined the profitability of high-cost offshore development. The project was suspended.

2021: Regional Energy Repositioning

In 2021, Benin committed to building the Niger-Benin Pipeline (PENB). Designed to transport Nigerien oil to the Seme-Kpodji terminal for export, the infrastructure strengthened the country's logistical role in regional oil trade. While not directly involving domestic production, it improved Benin's visibility among industry stakeholders and created more favorable conditions for reviving Block 1 activities.

2023: New Block 1 Award

In December 2023, Benin's authorities awarded Block 1 to Akrake Petroleum, a subsidiary of Rex International. The production-sharing contract formalized the resumption of exploration and redevelopment activities at the Seme field. In its statement of December 22, 2023, Rex International highlighted the use of advanced satellite imaging and seismic analysis technologies to improve geological assessment.

August 2025: Operational Phase Begins

In August 2025, the project entered the operational phase. Initial heavy equipment was mobilized on Block 1 under the program led by Akrake Petroleum. At Cotonou port and the Seme-Kpodji logistics base, infrastructure required for offshore operations was deployed, according to reports issued during this period.

2026: Production Potential Confirmed

On February 3, 2026, Akrake Petroleum announced successful drilling of well AK-2H. Of 1,405 meters drilled horizontally, 950 meters encountered oil-bearing formations with no water present, according to the operational report published by the company. The data indicate a commercially exploitable reservoir, paving the way for initial production estimated at around 15,000 barrels per day. Commercial startup remains contingent on connecting floating production and storage units (MOPU and FSO). After nearly three decades of interruption, Benin is approaching a return as an oil producer.

Abdel-Latif Boureima