Suriname signs offshore PSAs with global oil players

Energy giants Shell, TotalEnergies, QatarEnergy and Petronas have signed PSAs with Suriname’s state-run Staatsolie for three offshore oil and gas blocks, Reuters reported on Friday.

Malaysian NOC Petronas took full ownership of Block 63 and will act as operator.

TotalEnergies, QatarEnergy and Petronas are partnered on the Block 64 licence, with operator TotalEnergies taking a 40% stake and Petronas and QatarEnergy both taking a 30% stake.

Shell and QatarEnergy are partnered on Block 65 with 60% and 40% stakes respectively.

The exploration licences run for around seven years and are subject to participation by Staatsolie with a maximum 20% stake if finds are deemed to be commercial.

Exploration wells are planned on blocks 64 and 65 in the first three-year phase.

The bid round was launched in November 2022 and featured six offshore blocks in the northeastern area of the Suriname-Guyana basin nearby previous discoveries.

The plays are between 160 kilometres to 355 kilometres off the coast in water depths of between 150 metres and 3,000 metres.

The auction closed in May 2023.

Suriname currently produces hydrocarbons in onshore areas but has yet to begin offshore production.

Suriname launched its second offshore oil and gas bid round with 11 concessions on offer in November 2023.

The new bid round will run until May 2024 with successful winners announced in June 2024.

According to Reuters, TotalEnergies is planning to make its FID on developing Suriname’s Block 58 in 2024, with expected investments of around USD 9 billion.