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QatarEnergy Signs Two Contracts for Offshore Blocks in Suriname
QatarEnergy, Qatar’s state-owned energy giant, on Tuesday signed two production sharing contracts (PSCs) for two blocks offshore Suriname, following successful bids for these blocks.
These contracts were signed on behalf of QatarEnergy by Ali Abdulla Al-Mana, Manager of International Upstream & Exploration, during a ceremony hosted by Staatsolie, Suriname’s state-controlled oil company, in Paramaribo, the capital of Suriname.
It may be recalled that Chevron and a consortium between TotalEnergies and QatarEnergy submitted winning bids for blocks offered in the Suriname Shallow Offshore (SHO) in June 2021. 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.
Due to these two PSC deals, QatarEnergy will own a 20% working interest in both of these blocks, where licensing of the new 3D seismic and associated exploration activities is planned. On the other hand, the remaining working interest is shared equally between TotalEnergies, as the operator of the blocks, and Staatsolie’s affiliate, Paradise Oil Company.
Minister Pleased
Commenting on the two contracts, Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy, said that he was pleased to have concluded our entry into blocks 6 and 8 along with our partners, TotalEnergies and Staatsolie, and look forward to commencing exploration in this promising basin.
“I would like to take this opportunity to thank the Surinamese authorities, Staatsolie, and our strategic partner TotalEnergies for their excellent commitment and support that resulted in the signing of these agreements,” he added.
Located in the southern part offshore Suriname in shallow waters, with depths ranging between 40 and 65 meters, the adjacent blocks 6 and 8 are situated immediately south of Block 58, where TotalEnergies and its partner APA Corporation completed the drilling and a flow test at an appraisal well in February 2023, encountering oil and adding additional resource potential towards establishing a black oil development hub.
QatarEnergy has been working on expanding its portfolio and to this end, Qatar’s giant entered into an agreement with Shell to buy a partial interest in a block located off the coast of Mauritania.
The company also entered into a farm-in agreement for two exploration licenses offshore Newfoundland and Labrador in Canada with ExxonMobil. This deal allows the Qatari player to expand its offshore exploration portfolio in Atlantic Canada.
In addition, Qatar’s oil and gas player wrapped up the acquisition of a partial interest in two offshore blocks located in Lebanese waters in January 2023.