Paramaribo, SURINAME — Staatsolie Maatschappij Suriname N.V. and Chevron Exploration Suriname Ltd. are expanding their cooperation in shallow offshore Suriname. A production sharing contract (PSC) for offshore Block 7 was signed for this purpose on April 26.
With the signing of the PSC, Chevron (80% participating interest) has obtained exploration, development and production rights in Block 7. Staatsolie has a 20% participation share through its subsidiary Paradise Oil Co. N.V. (POC). The cooperation between POC and Chevron was confirmed with the signing of the joint operating agreement in which the arrangements between the partners are laid down.
The agreements enable Staatsolie to play an active role in the block partnership from day one. The costs in the exploration phase will be carried by Chevron. The exploration period, as set out in Chevron's PSC, will last eight years, divided into three phases.
The PSC also states that Chevron should give preference to materials, services and products offered by Surinamese companies. The condition is that they meet the quality, price and other commercial requirements. In this way, local participation within the offshore oil industry is stimulated.
Block 7 is in the west of the shallow offshore area and has a size of 1,867 sq km.
In October 2021, Staatsolie and Chevron signed a PSC for Block 5, in which Staatsolie has the right to a 40% participation through POC. In December 2021, Chevron farmed out one-third of its 60% stake in Block 5 to Shell (KE Suriname BV). POC retained its 40% stake as a non-executive partner.