French energy giant TotalEnergies has increased its presence in Suriname, thanks to the inking of production sharing contracts (PSCs) for two offshore blocks.
The signing of these PSCs comes after Chevron and a consortium between TotalEnergies and QatarEnergy submitted winning bids in June 2021 for blocks offered in the Suriname Shallow Offshore (SHO) Bid Round 2020/2021, which closed for bidding on 30 April. This enabled Chevron to obtain a stake in Block 5 , while the joint venture between TotalEnergies and QatarEnergy acquired interests in Block 6 and Block 8 .
Following QatarEnergy’s announcement from last week, TotalEnergies confirmed on Monday, 15 May 2023, the signing of the PSCs for blocks 6 and 8 with Staatsolie Maatschappij Suriname (Staatsolie), the state-owned oil company of Suriname. As a result, TotalEnergies will operate the two blocks with a 40 per cent interest, alongside QatarEnergy (20 per cent) and Paradise Oil Company (POC), a subsidiary of Staatsolie (40 per cent).
Kevin McLachlan, Senior Vice President Exploration at TotalEnergies, remarked: “TotalEnergies is pleased to expand its operatorship position in Suriname, a world-class emerging basin, exploring for low technical costs and low GHG emission oil resources. This new milestone further strengthens our strategic international partnership with QatarEnergy marking its first entry to Suriname”.
Located in shallow waters, with depths ranging between 30 and 50 meters, in the southern part offshore Suriname, close to the border with Guyana, the shallow water blocks 6 and 8 are immediately adjacent to the TotalEnergies-operated Block 58 where several discoveries have been made and appraisal drilling is ongoing.
The French player and its partner, APA Corporation, completed the drilling and a flow test in February 2023 at an appraisal well in Block 58, encountering oil and adding additional resource potential towards establishing a black oil development hub.