US-based oil and gas company Hess has announced its decision to relinquish its interest in Block 59 offshore Suriname.
The block will revert to the state oil company Staatsolie and will become available for new contracts.
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After fulfilling its minimum work obligations, Hess has chosen not to progress to the next phase of exploration.
This decision follows the withdrawal of its partners in July 2024. The partners, namely Statoil Suriname B59 (now Equinor Suriname B59) and ExxonMobil Exploration and Production Suriname, transferred their stakes to Hess, making it the sole participant in the block.
Signed in July 2017, the Production Sharing Contract (PSC) for Block 59 involved Staatsolie, ExxonMobil, Statoil (Equinor), and Hess.
The block, located in the far north-west of Suriname’s offshore territory, spans approximately 11,480km² in water depths ranging from 2,700m to 3,500m.
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By GlobalDataDespite the collection of 6,000km of 2D seismic data and 9,000km² of 3D seismic data, the previous partners deemed the risk of drilling an exploration well too high.
Hess’s efforts to attract new partners for further exploration of Block 59 over the past year have also been unsuccessful.
Staatsolie aims to incorporate the block into its strategy to have a significant portion of offshore acreage under contract with international companies. Currently, PSCs cover 50% of Suriname’s offshore area.
A PSC allows a foreign oil and gas company to explore, develop, and produce resources, with the option to attract partners or withdraw based on their strategic and risk assessments.
In related news, arbitrators have decided in the legal dispute between Exxon and Hess regarding a major oilfield project in Guyana.
The development centres on Chevron’s $53bn acquisition of Hess, which includes a 30% stake in Guyana’s Stabroek block where ExxonMobil is the operator with a 45% interest in the joint venture.
The International Chamber of Commerce in Paris is currently evaluating the decision prior to its release to the involved parties.
