US-based explorer Kosmos Energy has agreed to farm-out a one third stake in its Block 42 contract area offshore Suriname to Hess.
In return, Hess will fully fund the cost of a 6500sq km 3D seismic survey, expected to start in Q3 this year, and a disproportionate portion of the first exploration well, both subject to an agreed maximum limit, and inclusive of Hess’ share of the costs.
The move will leave Kosmos, which pitches itself as a hydrocarbon play opener, as operator, with a one third interest in the block, with the other one third partners being Hess and Chevron.
Suriname, south of Guyana, is yet to make its exploration mark, but it is the focus of a number of players and in a region which is under sharp focus, following ExxonMobil's Liza discovery off Guyana last year, which analysts Wood Mackenzie said was 2015's largest oil discovery.
And activity could be ramping up off Suriname. Late last month, Suriname state body Staatsolie said Malaysian state oil firm Petronas was due to start drilling offshore Suriname this month. Staatsolie says Petronas, with partner DEA, a German company, has lined up the Rowan Company's Ralph Coffman jackup for drilling the Roselle-I well on Block 52 starting early-mid May.
Block 52 covers 4749sq km and is 130km north of the coast of Paramaribo with 50-200m water depth. Once the well is completed, Petronas may drill a second well, says Staatsolie.
Other players in Suriname include Tullow with blocks 47 and 54, Murphy/Petronas with block 48, Kosmos/Chevron also have block 45, Inpex/Tullow with block 31 and Apache/CESPA with block 53.
Andrew G. Inglis, chairman and CEO of Kosmos, said: “Given recent industry success in the basin, Suriname is a top ranked opportunity in our exploration portfolio. This agreement with Hess, executed in an industry environment of capital constraints, validates the quality of our acreage position and the ongoing work to mature a number of significant prospects toward drilling."
Kosmos has held rights to conduct exploration in the Block 42 and Block 45 contract areas since 2011 under production sharing contracts with the government.
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