Qatar’s national energy powerhouse, QatarEnergy, has finalized an agreement with U.S. oil and gas titan Chevron to acquire a stake in a production-sharing contract (PSC) for an offshore block in Suriname.
Partnership Details
This transaction grants QatarEnergy a 20% working interest in Block 5, located offshore Suriname, where it will join forces with Chevron.
The U.S. company will continue to act as the operator and retain a 40% interest, mirroring the stake held by Paradise Oil Company, a subsidiary of Suriname’s state-owned oil firm Staatsolie.
QatarEnergy’s Strategic Expansion
Saad Sherida Al-Kaabi, President and CEO of QatarEnergy, expressed enthusiasm for the deal, stating, “This accord underscores our unwavering commitment to exploring the promising basins of Suriname and represents an exciting new collaboration with Chevron in the global upstream sector.”
He further added, “We are delighted to finalize this acquisition with our partners and eagerly anticipate working together in Block 5, offshore Suriname.
I would like to take this opportunity to express our gratitude to the authorities of the Republic of Suriname and our partner Chevron for their support in reaching this agreement.”
Block 5: A Promising Prospect
Block 5, situated in shallow waters approximately 30-45 meters deep off the coast of Suriname, is progressing to its second exploration phase, which includes a commitment to drill an exploratory well.
Staatsolie and Chevron initially signed a 30-year PSC for Block 5 in 2021. Chevron, which initially owned a 60% interest, later transferred 20% to Shell in the same year.
QatarEnergy’s Growing Presence in Suriname
The Qatari energy giant also holds interests in other blocks offshore Suriname. In May 2023, it secured a stake in Blocks 6 and 8, while PSCs for Blocks 63, 64, and 65 were signed with partners in December 2023.
In addition to its international ventures, QatarEnergy remains active on its home turf, focusing on the North Field, situated off the northeastern coast of the Qatar peninsula. Preparatory work for the field’s expansion project is well underway, aiming to boost Qatar’s liquefied natural gas (LNG) production capacity from 77 to 142 million tonnes per annum (mtpa) by 2030.