QatarEnergy joining Chevron in block offshore Suriname ahead of drill-or-drop commitment

Qatar’s state-owned energy giant QatarEnergy has inked a deal with U.S. oil and gas giant Chevron to acquire an interest in a production-sharing contract (PSC) for a block offshore Suriname.

Thanks to this, Qatar will purchase a 20% working interest in block 5 offshore Suriname, partnering with Chevron. The U.S. firm will stay on as operator and retain a 40% interest, the same as Paradise Oil Company, a subsidiary of Suriname’s national oil company Staatsolie.

Saad Sherida Al-Kaabi, the President and CEO of QatarEnergy, said: “This agreement highlights our continued commitment to exploring the promising basins of Suriname and marks an exciting new partnership with Chevron in the international upstream sector.

“We are pleased to conclude this acquisition with our partners and look forward to working with them in block 5, offshore Suriname. I would like to take this opportunity to thank the authorities of the Republic of Suriname, and our partner Chevron for their support in reaching this agreement.”

Block 5 is located in shallow water depths of about 30-45 meters off the coast of Suriname. The license is moving to its second exploration phase, which entails a commitment to drill an exploration well.

Staatsolie and Chevron signed a 30-year PSC for block 5 in 2021. The U.S. major had previously owned a 60% interest in the block but decided to transfer 20% to Shell later that year.

The Qatari giant also has stakes in other blocks offshore Suriname. In May 2023, it inked a deal to hold a stake in blocks 6 and 8, while PSCs for blocks 63, 64, and 65 were signed with partners in December 2023.

Aside from Suriname, the energy major has been keeping busy at home with North Field, lying off the northeast shore of the Qatar peninsula, which it shares with Iran. The preparatory work for the field’s expansion project is in full swing, aiming to raise Qatar’s liquefied natural gas (LNG) production capacity from 77 to 142 mtpa in 2030.​