QatarEnergy announced its acquisition of a 20% stake in a production sharing contract for an offshore block in Suriname. This move enhances QatarEnergy’s presence in the emerging oil-producing nation, Reuters reported.
Chevron, the lead operator of Suriname’s offshore block 5, will maintain a 40% stake, while the remaining 40% will be held by Paradise Oil Company, an affiliate of Suriname’s national oil company, Staatsolie.
Currently, Suriname’s oil production is limited to onshore fields. However, several significant deepwater oil discoveries have been made off its coast since 2019. The country’s first major offshore oil production is anticipated to begin in approximately four years.
According to energy consultancy Wood Mackenzie, Suriname’s discovered resources exceed 2.4 billion barrels of oil and liquids and over 12.5 trillion cubic feet of natural gas.
Saad Sherida Al-Kaabi, President and CEO of QatarEnergy, expressed his enthusiasm.
‘This agreement underscores our ongoing commitment to exploring the promising basins of Suriname and signifies an exciting new partnership with Chevron in the international upstream sector.’
‘We are delighted to finalize this acquisition with our partners and eagerly anticipate collaborating with them on block 5, offshore Suriname.’
Block 5 is situated in shallow waters, approximately 30-45 meters deep, off Suriname’s coast. The license is progressing to its second exploration phase, which includes drilling an exploration well.
In December, Shell, TotalEnergies, QatarEnergy, and Petronas signed production-sharing contracts with Staatsolie for three offshore blocks. Last month, TotalEnergies and APA Corp announced their intention to make a final investment decision on the $9 billion block 58. It’s Suriname’s most promising oil and gas project in the fourth quarter, with plans to commence production in 2028.
Block 58 is adjacent to Exxon Mobil’s extensive Stabroek block in Guyana, which has discovered over 11 billion barrels of recoverable oil and gas.