6 hours Ago By Irina Slav
Exxon has decided to pull out of an exploration block offshore Suriname and transfer its 50% stake to partner Petronas, the Suriname state oil company Staatsolie in a news release. The exit is part of Exxon’s ongoing asset evaluation, Staatsolie said, adding that after the transfer, Petronas will remain the single owner of the exploration rights to Block 52. The contract for exploration in Block 52 was inked back in 2013.
Exxon and Petronas struck gas in the block in 2020 but the volume discovered was deemed commercially unattractive. To try and change that, earlier this year the two companies an extension to their exploration works at the site, by drilling a second appraisal well. “A key component of feasibility is the guarantee of a tax-free period of 10 years from the start of production.
This is also stipulated in the letter of agreement, with government approval,” Staatsolie said at the time. Now, Exxon is leaving but Petronas will continue the exploration work on the discovery. Exxon does not seem to have been as lucky in Suriname as it has been in neighboring Guyana but other companies have struck commercial volumes of hydrocarbons off the Suriname coast.
TotalEnergies and APA Corp. have made five high-quality oil discoveries there, in Block 58, since 2020. The most recent discovery was the Krabdagu wildcat, completed in February 2022, while the most recent exploration well drilled, which came up dry, was in November that same year.
Earlier this month, TotalEnergies and APA made the final investment decision on Block 58, committing as much as $10.5 billion for the development of its oil and gas resources. The oil in place discovered so far has been estimated at 700 million barrels.
Some observers see this as Suriname’s following in the footsteps of its neighbor Guyana in turning into a hotspot for the energy industry. By Irina Slav for Oilprice.com.
