Staatsolie, Petronas sign production-sharing contract for deepwater block in Suriname

Staatsolie, the state energy company of Suriname, and an affiliate from Malaysia's Petronas signed a contract on Tuesday for a production sharing agreement to explore and develop an offshore oil-and-gas block.

Suriname will soon begin producing offshore natural gas and crude oil after companies such as TotalEnergies and APA discovered reserves that could be developed commercially. Staatsolie has the option to buy up to 20% of each area.

Petronas subsidiary Paradise Oil Company will obtain an 80% stake in deepwater block 66 and become the operator of the area through the contract. Staatsolie will retain the remaining 20%.

In a press release, Staatsolie stated that the Malaysian company had committed to drilling at least two exploration wells in the first phase of exploration.

The block is situated in the western part Suriname-Guyana Basin at water depths between 1,000 and 2,200 meters. It is close to block 52 where Petronas evaluates several oil and gas discoveries.

Petronas has now made four oil and natural gas discoveries in Suriname. Staatsolie reported that with the signing of this contract, approximately 50% of Suriname’s offshore area has been contracted. (Reporting and editing by Marianna Pararaga)

(source: Reuters)