Suriname state oil company Staatsolie on Oct. 13 said it had signed a 30-year production sharing contract with U.S. producer Chevron Corp. for the South American country’s offshore Block 5.
Chevron Exploration Suriname Ltd. and a consortium by TotalEnergies and Qatar Petroleum in June submitted favorable bids for shallow-water exploration in Blocks 5, 6 and 8 in an auction by Staatsolie following a string of oil discoveries.
The production sharing contract (PSC) gives exploration, development and production rights to Chevron Exploration Suriname. Staatsolie can opt for a 40% share of the project during its development phase.
“Staatsolie is excited to have been able to add another major player in the oil industry to its list of operators. These parties have resources and systems in place to maximize the opportunity for development,” the company said in a release.
Chevron, which agreed to pay a signing bonus of $30.88 million, is expected to cover the block’s exploration costs in a first phase that will last six years, Staatsolie said.
“[This is] a nice windfall for a country that is having a pretty hard time right now,” said Staatsolie Managing Director Annand Jagesar in an interview with a local radio station.
Suriname’s shallow-water area covers 120 km from the coast at a depth of up to 100 m. Block 5, located in the area’s west, covers 2,235 sq km.
Recommended Reading
Trump Says He Will Double Tariffs on Canadian Metals to 50%
2025-03-11 - President Trump said he would double his tariffs on Canadian steel and aluminum products in response to Ontario placing a 25% tariff on electricity supplied to the U.S.
Enchanted Rock’s Microgrids Pull Double Duty with Both Backup, Grid Support
2025-02-21 - Enchanted Rock’s natural gas-fired generators can start up with just a few seconds of notice to easily provide support for a stressed ERCOT grid.
ADNOC Contracts Flowserve to Supply Tech for CCS, EOR Project
2025-01-14 - Abu Dhabi National Oil Co. has contracted Flowserve Corp. for the supply of dry gas seal systems for EOR and a carbon capture project at its Habshan facility in the Middle East.
McDermott Completes Project for Shell Offshore in Gulf of Mexico
2025-03-05 - McDermott installed about 40 miles of pipelines and connections to Shell’s Whale platform.
US Drillers Cut Oil, Gas Rigs for First Time in Three Weeks
2025-03-28 - The oil and gas rig count fell by one to 592 in the week to March 28.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.