Suriname's Staatsolie Pens 30-year PSC with Chevron for Offshore Block

Thursday, October 14, 2021
Credit: Staatsolie

Suriname state oil company Staatsolie on Wednesday 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 (QATPE.UL) 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 kilometers from the coast at a depth of up to 100 meters. Block 5, located in the area's west, covers 2,235 square kilometers.

(Reporting by Ank Kuipiers in Paramaribo, writing by Marianna Parraga, Editing by Rosalba O'Brien)

Categories: Energy Industry News Caribbean Activity Production

Related Stories

Israel Orders Energean to Halt FPSO Production as Iran Launches Counterstrikes

Israel Orders Energean to Halt FPSO Production as Iran Launches Counterstrikes

DNO Quadruples North Sea Production with Sval Energi Acquisition

DNO Quadruples North Sea Production with Sval Energi Acquisition

FourPhase Nets Shell Contract for its Caribbean Oil and Gas Platforms

FourPhase Nets Shell Contract for its Caribbean Oil and Gas Platforms

Current News

Commodity Report: Meeting Oil Demand a Challenge if Israel Hits Iran Oil

Egypt Halts Fertilizer Production In Light of Israeli Gas Disruptions

Edda Wind Welcomes New CSOV to its Fleet

TotalEnergies’ Unit to Build Battery Storage Site in Japan to Help Balance Grid

Subscribe for OE Digital E‑News

Offshore Engineer Magazine