California-based Chevron Corp. has signed an agreement to divest a 20% interest in a production sharing contract for Suriname offshore Block 5 to QatarEnergy.

Per the agreement, Chevron as the operator will retain a 40% interest in the block, QatarEnergy said in a July 18 press release. Paradise Oil Co., an affiliate of Suriname’s national oil company Staatsolie, retains the remaining 40% interest.

Financial details of the agreement weren’t disclosed.

“This agreement highlights our continued commitment to exploring the promising basins of Suriname,” Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and president and CEO of QatarEnergy, said in the release.

Block 5 is located in shallow water depths of about 30 m to 45 m. The block’s license is currently proceeding to its second exploration phase with a commitment to drill an exploration well, according to QatarEnergy.

In Suriname, located immediately east of Guyana, Chevron has interest in Block 42, Block 5 and Block 7.

Efforts offshore Suriname spearheaded by APA Corp. and France’s TotalEnergies in Block 58 have created potential for Suriname to team up with Guyana to jointly develop and commercialize their resources.

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