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Staatsolie and Chevron sign offshore production sharing contract

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Oilfield Technology,

Suriname's state oil company Staatsolie has signed an offshore production sharing contract (PSC) with Chevron for Block 5.

Block 5 is located in the west of the shallow area offshore Suriname and has a size of 2235 km2. The 30-year contract was signed by Staatsolie's General Manager Annand Jagesar, Upstream Director Rekha Bissumbhar and Chris Steele, Chevron's Head Emerging Countries.

Staatsolie retains the right to a 40% participation in the block. The costs in the exploration phase will be carried by Chevron. The exploration period, as set out in the PSC, will last 6 years, divided into three 2-year phases. A signing bonus of US$30.8 million will be paid by Chevron to Staatsolie after signing the two contracts.

Chevron made the most favourable offer for Block 5 at the Suriname Shallow Offshore Bid Round 2020/2021. In this tendering round, interested companies could bid for blocks in the so-called shallow offshore, the sea area up to 120 km from the coast and with a water depth of up to 100 m.

The PSC also states that Chevron should give preference to materials, services and products offered by Surinamese companies.

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