Rex International’s Akrake Petroleum Spuds First Well in Benin’s Sèmè Field: Production Restart After 30 Years Poised to Drive Share Value

Key Highlights for Retail Investors

• First Well Spudded in Sèmè Field, Benin: Rex International’s subsidiary, Akrake Petroleum Benin S.A., commenced drilling on 4 August 2025, marking the first oilfield activity in the region after nearly three decades of inactivity.
• Ambitious 100-Day, Three-Well Drilling Campaign: The program targets two horizontal production wells in the previously developed H6 formation and a deeper vertical appraisal well in H7 and H8 formations, unlocking future development potential.
• Production Start and Target: Oil production is expected to begin in Q4 2025, with initial rates estimated at approximately 15,000 barrels of oil per day (bopd).
• Infrastructure Mobilisation: A refurbished Mobile Offshore Production Unit (MOPU) and a Floating Storage & Offloading unit (FSO) are scheduled to arrive in Q4 2025 to support the production restart.
• Strategic Significance: The project marks a major milestone for Rex International and its subsidiary Lime Petroleum Holding AS (LPH), with strong support from local partner Octogone E&P S.A. and Benin authorities.
• Financial Backing: The Benin redevelopment is partly funded by LPH’s NOK 1.75 billion bond issuance in 2024, now listed on the Oslo Stock Exchange (ISIN NO0013276410).
• Potential Upside: The restart of production and new data collection, including analysis of 3D seismic data, aim to optimise further development and untap deeper reservoirs, potentially increasing reserves and boosting future output.
• Ownership Structure: Akrake Petroleum holds a 76% interest in Sèmè Field (subject to government entitlements) and is a wholly-owned subsidiary of LPH, itself 80.14% owned by Rex International.

In-Depth Analysis & What Shareholders Must Know

Rex International Holding Limited, a Singapore-listed oil exploration and production company, has announced a significant breakthrough in West Africa. Its indirect subsidiary, Akrake Petroleum Benin S.A., spudded the first well in the Sèmè Field, Block 1, Benin, on 4 August 2025. This marks the first oilfield activity in the region since the 1990s, representing a pivotal moment for both Rex and Benin’s oil industry.

The campaign, executed with the Borr Gerd jack-up drilling rig, is part of a fast-paced, 100-day program focusing on the redevelopment of the Sèmè Field. Two horizontal production wells are being drilled in the H6 formation, previously developed by earlier operators, and a deeper vertical appraisal well is being drilled in the H7 and H8 reservoirs. The strategic goal is not only to restart production but also to gather critical subsurface data that could enable a larger-scale Phase 2 development.

Completion of drilling is expected in the fourth quarter of 2025, coinciding with the arrival and installation of a refurbished Mobile Offshore Production Unit (MOPU) and a Floating Storage & Offloading unit (FSO). Once the MOPU is connected to the new wells, production will commence at an anticipated initial rate of 15,000 bopd. This rapid ramp-up is designed to maximise early cash flow and unlock further value for shareholders.

Beyond the immediate production, Akrake Petroleum will collect new geological data and re-evaluate it alongside reprocessed 3D seismic data from 2007. This approach is expected to optimise development strategies and explore deeper, untapped reservoir sections in the Sèmè Field—potentially leading to additional reserves and future production increases.

Dr Steve Moore, Deputy COO of Rex and General Manager of Akrake Petroleum, highlighted the significance of returning oil production to Benin and praised the support of local authorities and partners. Lars B. Hübert, CEO of Lime Petroleum Holding AS (LPH), emphasised the importance of 2025 as a transformative year for Rex’s subsidiaries across Benin, Norway, and Germany, and the synergies leveraged across the Group for operations, seismic analysis, procurement, and fundraising.

Financially, this redevelopment is underpinned by LPH’s successful NOK 1.75 billion bond issue in 2024, listed on the Oslo Stock Exchange. A portion of these funds is earmarked for the Sèmè project, demonstrating Rex’s ability to attract international capital for strategic upstream investments.

Akrake Petroleum retains a 76% interest in the Sèmè Field, subject to the Benin government’s entitlements under the Production Sharing Contract (PSC). The company is a wholly-owned subsidiary of LPH, which is, in turn, 80.14% owned by Rex International.

Why This News Is Price-Sensitive

• Production Restart After 30 Years: The imminent return to production in Sèmè Field is a key operational milestone that could significantly impact Rex’s revenue and cash flow, especially given the substantial initial production rate targeted.
• Reserve Upside and Future Growth: New wells and seismic data analysis may unlock further reserves, offering the potential for resource upgrades and higher future output—critical factors for valuation re-rating.
• Strategic Geographic Expansion: Success in Benin complements Rex’s multinational asset portfolio, enhancing its growth profile and market positioning.
• Strong Financial Position: The ability to raise significant capital for such a project increases investor confidence in Rex’s funding and execution capabilities.

About Rex International Holding

Rex International Holding Limited is a multinational oil exploration and production company listed on the Singapore Exchange. With operations and assets in Norway, Germany, Oman, and Benin, the company leverages proprietary seismic technology to de-risk exploration and development. Since listing in 2013, Rex has achieved four offshore discoveries and continues to expand its global footprint.

Disclaimer: This article contains forward-looking statements based on current assumptions and projections. Actual outcomes may differ due to risks, uncertainties, and factors beyond the company’s control. Retail investors are advised not to place undue reliance on these statements and to perform their own due diligence before making investment decisions. The author does not assume responsibility for any investment losses arising from reliance on the information provided.

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