Staatsolie Maatschappij Suriname N.V., a state-owned Surinamese oil and gold company, announced that it had signed a 30-year production sharing contract with Chevron Corp (CVX.N) for the South American country’s offshore Block 5, according to Reuters.
According to this Production Sharing Contract (PSC), Chevron Exploration Suriname will be granted exploration, development and production rights. When the project is in its development phase, Staatsolie may opt for a 40% share of it.
It is worth noting that Suriname’s shallow-water area covers 120 kilometers from the coast at a depth of 100 meters. Block 5, located in the area’s west, covers 2,235 square kilometers.
“Staatsolie is excited to have been able to add another major player in the oil industry to its list of operators. These parties have resources and systems in place to maximize the opportunity for development,” the company said in a statement commenting on the deal.