Chevron Suriname Exploration (CSEL), a unit of US-based oil producer Chevron, has agreed to transfer 20% stake in Block 5 offshore Suriname to Shell (KE Suriname B.V).

Upon the completion of the deal, Chevron Suriname will have 40% stake in the block while Shell will have 20% stake. The remaining 40% stake is held by Paradise Oil Company (POC), a wholly owned subsidiary of Staatsolie Maatschappij Suriname.

In a press statement, Staatsolie said: “The farm-out underlines the great interest there is in the offshore area of Suriname.

“An interest that has been fueled by the recent major discoveries, but certainly also by Suriname’s good work in presenting prospects in the offshore blocks to the oil and gas world.

“Shell’s participation in Block 5 also means that more expertise is involved in the analysis, which will increase the chance of more exploration successes in the Surinamese offshore.”

Located in the west of the shallow offshore area, the Block 5 covers an area of 2,235km2.

Production sharing contract (PSC) for the Block 5 was signed by Staatsolie and CSEL in October 2021.

In June 2021, Staatsolie awarded three offshore exploration blocks 5,6 and 8 to Chevron and a consortium of Qatar Petroleum and TotalEnergies.

The adjacent blocks 6 and 8 are situated immediately adjacent to the prolific Block 58 discoveries. They are located in the southern part of offshore Suriname.

Staatsolie offered a total of eight new blocks under the bidding round 2020/2021 launched in November 2020.

These blocks are located in the west of the Shallow Offshore area, south of the recent discoveries made in Block 58, and northwest of the onshore producing fields.