PARAMARIBO: Suriname’s state oil company Staatsolie and Malaysia’s Petronas signed a production sharing contract on Friday for an offshore bloc about 130 kms (80 miles) off the coast of the South American nation.
Staatsolie said Petronas will invest $25 million, drill at least one exploratory well and conduct a 3D seismic survey of Block 52.
It said Petronas’s costs would be reimbursed if the Malaysian company developed a commercial discovery, in which case, Staatsolie would have the option to participate with a 20 percent stake.
Last year, Staatsolie signed a production sharing deal with Apache Corp of the United States to invest $230 million in the exploration of a different offshore block.
Staatsolie, founded in 1982, produces about 16,000 barrels of oil a day. Global energy companies are showing growing interest in the potential of South America’s northeastern shoulder. A 2011 discovery off French Guiana was described as a “game-changer” for the region’s oil prospects.
