ExxonMobil drops out of block with gas & oil discoveries offshore Suriname

ExxonMobil Exploration & Production Suriname, a subsidiary of the U.S.-headquartered energy giant ExxonMobil, has pulled out of a block containing gas and oil discoveries off the coast of Suriname and transferred its stake to its partner.

Suriname’s national oil company Staatsolie Maatschappij Suriname (Staatsolie) has confirmed the receipt of a notification from ExxonMobil regarding the U.S. giant’s intention to withdraw from Block 52 in the Surinamese offshore area effective November 14, 2024. The withdrawal is perceived to be part of the firm’s ongoing evaluation of assets in its global portfolio.

As a result of its exit from the block, ExxonMobil is transferring its 50% working interest to Petronas Suriname E&P, a subsidiary of Malaysia’s Petronas and the operator of the Surinamese block. The transfer enables the Malaysian firm to become the sole owner of Block 52, where operations are expected to continue as usual.

Covering an area of 4,749 square kilometers, Block 52 is located north of the Surinamese coast. Following a gas discovery in 2020 with the Sloanea-1 exploration well, Petronas drilled the Sloanea-2 appraisal well earlier this year.

Before this, an oil discovery was also made at the Roystonea-1 well in Block 52, prompting further evaluation to determine the full extent of the discovery and its potential development synergy with the Sloanea-1 discovery.

Furthermore, Petronas confirmed a third hydrocarbon discovery on the block in May 2024 at the Fusaea-1 exploration well about 170 kilometers offshore and 9 kilometers east from Roystonea-1. The well, which was spudded in February 2024, encountered several oil and gas-bearing Campanian sandstone reservoir packages.

Mohd Redhani Abdul Rahman, Petronas’ Vice President of Exploration, explained at the time that the three discoveries significantly expanded the prospectivity and integrated oil and gas development potential within Block 52. He also underlined that Petronas would remain committed to its exploration activities in selected focus regions as part of its portfolio rationalization efforts.

After Petronas handed out a one-well contract with a one-well extension option in July 2023 to Noble Corporation’s Noble Discoverer semi-submersible rig to drill an exploration well in Block 52, the operations were slated to start in August 2023.

However, the work scope was transferred to the 2015-built Noble Voyager drillship in January 2024. Once April 2024 rolled in, Petronas exercised the option to extend the rig’s assignment and drill one additional well in the block at a day rate of $470,000. 

Shearwater GeoServices, which secured a large towed streamer 3D seismic survey with Petronas for Block 52 in September 2020, won a 3D seismic survey for the same block in November 2024.

In addition to Block 52, Petronas operates Block 48 and Block 63 with 100% participating interest and acts as a partner with 30% non-operating participating interest in the adjacent Block 53 where the Baja-1 oil discovery was made in 2022.

Many oil majors and energy players are engaged in hydrocarbon exploration activities offshore Suriname, including France’s TotalEnergies, which made a final investment decision (FID) at the start of October 2024 to develop oil discoveries in Block 58.

Afterward, the French giant selected Scotland’s ADC Energy for the rig selection process, SBM Offshore and Technip Energies to construct and install an FPSO; and TechnipFMC for integrated engineering, procurement, construction, and installation (iEPCI) work.

In addition, Saipem was entrusted with the engineering, procurement, supply, construction, installation, pre-commissioning, and assistance for the commissioning and start-up of the subsea umbilicals, risers and flowlines (SURF) package.