PARAMARIBO, Oct.13 (Reuters) – Suriname’s state-owned oil company Staatsolie on Wednesday announced that it has signed a 30-year production-sharing contract with US producer Chevron Corp (CVX.N) for the southern country’s offshore Block 5 -American.
Chevron Exploration Suriname Ltd and a consortium of TotalEnergies and Qatar Petroleum (QATPE.UL) submitted favorable bids for shallow water exploration in Blocks 5, 6 and 8 in June in an auction by Staatsolie at following a series of oil discoveries.
The production sharing contract (PSC) gives the exploration, development and production rights to Chevron Exploration Suriname. Staatsolie can opt for a 40% stake in the project during its development phase.
“Staatsolie is delighted to have been able to add another major player in the petroleum industry to its list of operators. These parties have resources and systems in place to maximize development opportunities,” the company said in a statement. .
Chevron, which has agreed to pay a signing bonus of $ 30.88 million, is expected to cover exploration costs for the block in a first phase that will last six years, Staatsolie said.
“(This is) a great boon for a country which is going through a rather difficult time at the moment,” Staatsolie chief executive Annand Jagesar said in an interview with a local radio station.
Suriname’s shallow water zone covers 120 kilometers from the coast to a depth of up to 100 meters. Block 5, located to the west of the area, covers 2,235 square kilometers.
Reporting by Ank Kuipiers in Paramaribo, written by Marianna Parraga, editing by Rosalba O’Brien
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