QatarEnergy to take part in offshore Chevron-operated Suriname block
DUBAI, July 18 (Reuters) -QatarEnergy has signed a deal to acquire a 20% interest in a production sharing contract for an offshore block in Suriname, it said on Thursday, boosting its participation in the nascent oil-producing country.
Chevron CVX.N, the operator of Suriname's offshore block 5, will retain a 40% interest, while Paradise Oil Company, an affiliate of Suriname's state oil firm Staatsolie, will own the remaining 40%.
Current oil output in Suriname is solely focused onshore, but several deepwater fields have been discovered in the country's waters since 2019. Its first major offshore oil production is roughly four years away.
Energy consultancy Wood Mackenzie has estimated Suriname's discovered resources at more than 2.4 billion barrels of oil and liquids and more than 12.5 trillion cubic feet of gas.
In December, Shell, TotalEnergies, QatarEnergy and Petronas signed production-sharing contracts with Staatsolie for three offshore blocks.
TotalEnergies said last month that it and APA Corp will make a final investment decision on the $9 billion block 58, Suriname's most promising oil and gas project, in the fourth quarter, aiming to begin output in 2028.
Block 58 lies adjacent to Exxon Mobil's massive Stabroek block in Guyana, where more than 11 billion barrels of recoverable oil and gas have been found.
Block 5, which QatarEnergy announced taking a stake in on Thursday, is located offshore Suriname in shallow water depths of about 30-45 metres. The license is currently proceeding to its second exploration phase with a commitment to drill an exploration well.
"This agreement highlights our continued commitment to exploring the promising basins of Suriname and marks an exciting new partnership with Chevron in the international upstream sector," QatarEnergy CEO Saad al-Kaabi said in a statement.
Reporting by Sarah El Safty; Editing by Yousef Saba and Elaine Hardcastle
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
