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.
Read the latest issue of Oilfield Technology in full for free: Issue 3 2021
Oilfield Technology’s third issue of 2021 starts with a report from Wood Mackenzie focusing on the upstream industry’s fortunes in Asia-Pacific. The rest of the issue is dedicated to features covering offshore engineering, coiled tubing, frac technology, completion technologies, water management, well placement and much more.
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Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/14102021/staatsolie-and-chevron-sign-offshore-production-sharing-contract/
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