Staatsolie Inks 30-Year PSC With Chevron For Offshore Block
Suriname’s national oil company Staatsolie has signed a 30-year production sharing contract with oil supermajor Chevron for Block 5 located off the South American country.
Staatsolie said that it gave Chevron exploration, development, and production rights by entering into this production sharing contract.
Block 5 is located in the shallow offshore area and has a size of 863 square miles. Staatsolie added that it had the right to opt for a 40 percent participation in the block during the development phase.
The 30-year contract was signed by Staatsolie’s Managing Director Annand Jagesar, Onshore Upstream Director Rekha Bissumbhar, and Chevron’s GM for Emerging Countries Chris Steele.
Chevron agreed to pay a signing bonus of $30.88 million and is expected to cover the block’s exploration costs in the first phase that will last six years, divided into three two-year phases.
Under the PSC, Chevron should give preference to materials, services, and products offered by Surinamese companies under the condition that they meet the quality, price, and other commercial requirements.
It is worth reminding that Chevron and a consortium consisting of TotalEnergies and QatarEnergy submitted winning bids for blocks offered in the Suriname Shallow Offshore (SHO) Bid Round 2020/2021.
It was announced in June 2021 that Chevron filed the most favorable bid for Block 5 while the TotalEnergies and QatarEnergy joint venture gave the best offers for Block 6 and Block 8.
One of the obligations for the winning firms was to carry out new 3D seismic data surveys in the first exploration phase with a drill-or-drop decision before drilling in subsequent phases.
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