Chevron had acquired operating interest in block 5 in 2021 and then acquired an 80 percent operational working interest in block 7.

QatarEnergy is set to increase its participation in Suriname’s offshore exploration under an agreement signed with Chevron to acquire a 20 percent working interest in a production sharing contract.

In a press release on Thursday, the Qatari company announced that Chevron, the operator of Suriname’s block 5, will have a 40 percent interest. 

Paradise Oil Company, an affiliate of Suriname’s national oil company, Staatsolie, will own the remaining 40 percent.

According to QatarEnergy, block 5 is located offshore Suriname in shallow water depths of about 30-45 metres. It noted that the “license is currently proceeding to its second exploration phase with a commitment to drill an exploration well.”

QatarEnergy’s President and CEO Saad Sherida Al-Kaabi described the agreement as one that would highlight the Qatari company’s “continued commitment to exploring the promising basins of Suriname.”

“We are pleased to conclude this acquisition with our partners and look forward to working with them in block 5, offshore Suriname. I would like to take this opportunity to thank the authorities of the Republic of Suriname, and our partner Chevron for their support in reaching this agreement,” Al-Kaabi, who is also Qatar’s minister of state for energy affairs, said.

Chevron had acquired operating interest in block 5 in 2021 and then acquired an 80 percent operational working interest in block 7.

Numerous deepwater fields have been discovered in Suriname’s waters since 2019, though its current oil production is onshore, according to Reuters.

Last December, QatarEnergy signed two Production Sharing Contracts for Suriname’s offshore blocks 64 and 65 after winning a bid round held in June 2023. 

Under the contracts, the Qatari company owns a 30 percent working interest in block 64 with the operator, TotalEnergies, which owns 40 percent. Petronas owns the remaining 30 percent.

The same contract also granted QatarEnergy a 40 percent share in block 65 and the operator, Shell, owns 60 percent.

In May, Petronas Suriname E&P and ExxonMobil Exploration and Production Suriname made a new hydrocarbon discovery at an exploration well in Block 52 offshore Suriname.

According to Chevron, the Suriname-Guyana Basin is “one of the largest and most exciting new offshore exploration plays in the world” with promising potential for hydrocarbon discovery.