QatarEnergy Participate in Offshore Block in Suriname Operated by Chevron

QatarEnergy announced on Thursday that it has entered into an agreement to obtain a 20% stake in a production sharing contract for an offshore block in Suriname. This move signifies an expansion of QatarEnergy’s presence in the emerging oil-producing nation.

Chevron, the operator of Suriname’s offshore block 5, will maintain a 40% stake, while Paradise Oil Company, an affiliate of Suriname’s state-owned oil company Staatsolie, will hold the remaining 40%.

Presently, Suriname’s oil production is exclusively concentrated onshore. However, since 2019, numerous deepwater fields have been discovered in the nation’s waters. The commencement of Suriname’s first significant offshore oil production is approximately four years away.

Wood Mackenzie, an energy consultancy, has projected that Suriname's identified resources exceed 2.4 billion barrels of oil and liquids, along with over 12.5 trillion cubic feet of gas.

In December, Shell, TotalEnergies, QatarEnergy, and Petronas inked production-sharing agreements with Staatsolie for three offshore blocks.

TotalEnergies announced recently that it, along with APA Corp, will reach a final investment decision on the $9 billion block 58, Suriname's most promising oil and gas venture, in the fourth quarter, with plans to commence production in 2028.

 

Block 58 is situated adjacent to Exxon Mobil’s substantial Stabroek block in Guyana, where recoverable oil and gas reserves have been estimated to exceed 11 billion barrels.

 

Block 5, in which QatarEnergy recently announced its acquisition of a stake, is situated offshore Suriname in shallow water depths ranging approximately from 30 to 45 meters. The license is currently progressing to its second exploration phase, with a commitment to undertake an exploration well drilling.

“This agreement underscores our unwavering dedication to investigating the potential-rich basins of Suriname and signals the commencement of a compelling collaboration with Chevron in the global upstream sector”  -Saad al-Kaabi, QatarEnergy CEO’s perspective on the global upstream industry