Page 4 - LatAmOil Week 30

LatAmOil COMMENTARY LatAmOil

Suriname: What’s at stake?

Apache and Total have made three discoveries at Block 58 this year,
against a backdrop of economic upheaval and political transition

US-BASED Apache has struck oil again offshore Activity at the latter site picked up late last
Suriname, bringing the total number of discov- year. Apache used the Noble Sam Croft drill-
WHAT: eries at its licence area up to three. ship to spud its first exploration well at the
US-based Apache has Its success is likely to heighten interest in the Maka section of Block 58 in September 2019.
found oil in its third South American country, which is Guyana’s The well, Maka Central-1, reached the target
exploration well offshore eastern neighbour. The latter country became depth of 6,200 metres by early December. The
Suriname. an oil producer last December, and Apache’s company began testing the well in order to eval-
Block 58 lies adjacent to ExxonMobil’s Stabroek uate two plays but did not comment publicly on
WHY: block offshore Guyana. As such, there is reason the results of these tests. Instead, it announced
The discovery came to believe that there is more oil to be found in plans to resume drilling and continue to a depth
shortly after the South Suriname. of 6,900 metres so that it could evaluate a poten-
American country’s But bringing it to market may not be easy or tial third play.
long-serving president quick. Like Guyana, Suriname is dealing with This move led some industry analysts to
left office. political issues that have the potential to affect speculate that Apache was headed for another
operations in the oil and gas sector. This essay disappointment. For example, Leo Mariani,
WHAT NEXT: will seek to provide an overview of Apache’s an analyst at KeyBanc Capital Markets, told
Suriname’s new progress so far and of Suriname’s political scene. Bloomberg in early December that the com-
government wants to pany’s actions – and its tight-lipped stance on
attract more oil and gas Operational background Maka Central-1 – might be a sign that the first
investment. Apache has been working in Suriname for more two plays did not meet expectations.
than five years. It began its first round of explo- Apache’s next move was to finalise an agree-
ration drilling in the country’s offshore zone in ment that brought France’s Total into the project.
2015, when it spudded the Popokai-1 well at This deal, signed in late December, split equity in
Block 53. That well turned out to be a dry hole, Block 58 on a 50:50 basis between the two firms.
though, and the company eventually turned its It also provided for the French giant to take over
attention to Block 58. as operator at a future date.

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