Chevron Corporation’s CVX affiliate Chevron Suriname Exploration (CSEL) recently agreed to sell its 20% holding in Block 5 off the coast of Suriname to a unit of Royal Dutch Shell Plc.
San Ramon, CA-based Chevron Suriname will own a 40% share in the block when the agreement is completed, while the Anglo-Dutch supermajor Shell will hold a 20% stake. Paradise Oil Company (POC), a wholly-owned subsidiary of Staatsolie Maatschappij Suriname, owns the remaining 40% interest.
Staatsolie appreciates the involvement of a well-known party like Shell in Block 5. The farm-out demonstrates a high level of interest in Suriname's offshore territory, spurred by the recent big discoveries and the country’s excellent efforts in showing great potential in offshore blocks to the oil and gas industry.
RDS.A's engagement in Block 5 is considered a way to boost chances of greater exploration and its resultant success in offshore Suriname by bringing in more experience to the block's research.
In October this year, Staatsolie signed a 30-year production sharing contract (PSC) with Chevron for the Block 5, which encompasses 863 square miles in size and is located in the shallow offshore region. By signing into this PSC, Chevron obtained exploration, development and production rights. Staatsolie is foraying into offshore activities as a partner through this transaction.
Also, recently, Chevron inked a deal with the government of Equatorial Guinea (EG) for offshore block EG09 in the Douala Basin near the Cameroon border.
Per the terms of the deal, CVX will be run with an 80% stake, the rest being held by GEPetrol, the state-owned oil company. Chevron will implement a work program in collaboration with the government to pave the way for Block EG09 development.