U.S. oil producer Hess Corp has decided to withdraw from Suriname's offshore Block 59, the South American nation's state oil firm Staatsolie said on Tuesday, adding the block would now return to Staatsolie.
"Hess has fulfilled its minimum work obligations and decided not to proceed to the next phase of the exploration period ending July 8, 2025," Staatsolie said in a statement.
Hess did not immediately respond to a Reuters request for comment.
ExxonMobil and Equinor had a year earlier exited from the block feeling there was too much risk involved in drilling an exploration well, and Hess had since then been unable to find new partners to explore the block, it added.
Block 59's sea depth ranges between 2,700 and 3,500 meters, Staatsolie said, and Hess' former partners had left after collecting seismic data necessary for developing a viable oil field in the far north-western part of Suriname's marine area.
Around half of Suriname's sea area is currently subject to production sharing contracts with various international oil and gas companies, Staatsolie said, adding the returned area would be taken account in its strategy to have as much of the sea area as possible under contract with international parties.
(Reuters - Reporting by Ank Kuipers; Writing by Sarah Morland; Editing by Brendan O'Boyle and Natalia Siniawski)