Chevron and Shell have signed a farm-out agreement for Block 5, offshore Suriname.
Chevron and Shell have signed a farm-out agreement for Block 5, offshore Suriname.
Chevron transferred to Shell a third of its 60% interest in Block 5 for which it has a production sharing agreement.
National oil company Staatsolie signed a 30-year PSC with Chevron for the block last October. The 2235 km2 Block 5 is located in the shallow offshore area. The deal marked Staatsolie’s first participation in offshore activities as a partner.
After Shell’s farm-in, Staatsolie’s wholly-owned subsidiary, Paradise Oil Company, has retained its 40% interest.
Meanwhile, Chevron and a consortium of TotalEnergies and QatarEnergy have submitted winning bids for blocks offered in the Suriname Shallow Offshore Bid Round 2020/ 2021 which closed for bidding on April 30.
Chevron has obtained a stake in Block 5 and agreed to pay a signing bonus of $30.88 million. It is expected to cover the block’s exploration costs in the first phase that will last six years.
The joint venture between TotalEnergies and QatarEnergy acquired interests in Block 6 and Block 8.
Exploration well 35/10-7 A encountered a 60 metre oil-filled sandstone-dominated interval in the lower part of the Ness formation and in the Etive formation.
Well 35/10-7 S had a measured depth of 3563 metres below sea level and was completed in the Dunlin Group of early Jurassic rock. Well 30/10-7 A was drilled to a measured depth of 3574 metres below sea level and was completed in the upper part of the Dunlin Group.
