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Georgetown must also take a final decision on auction on the basis of data that was collected via
the question of whether to preclude current its own 3D seismic surveys, rather than studies
block holders such as ExxonMobil from submit- carried out by potential investors.
ting bids during future auctions, he said. Jagdeo declined to say whether George-
Currently, the Guyanese government is town favoured one model over the other. When
considering the possibility of adopting the auc- pressed on the matter, he stated simply that the
tion practices used by a neighbouring country government would come to a decision before
– Suriname, which decided which blocks to the September deadline. ™

SURINAME
Staatsolie, Chevron sign PSC for Block 7

STAATSOLIE, the national oil company (NOC) Staatsolie to play an active role in the block part-
of Suriname, has struck a deal that will allow the nership from day one,” as it splits equity in the
US major Chevron to add Block 7 to its portfolio project 80% to the US major and 20% to POC,
of offshore assets. the statement noted.
In a statement dated April 27, Staatsolie It also reported that Chevron had agreed to
reported that it had signed a production-shar- carry 100% of exploration costs during the first
ing contract (PSC) with Chevron for Block 7, a phase of the project. Exploration work will be
shallow-water licence area that lies directly to carried out in three phases over a period of eight
the east of Block 5. The US company is already years, it said.
working at Block 5 under a PSC signed with Staatsolie did not reveal any details about the
Staatsolie in October 2021, it explained. partners’ exploration programme at Block 7.
Block 7, which covers an area of 1,867 square But it did note that Chevron would be obligated
km, is one of the eight licence areas that Staat- under the terms of the PSC to meet local-con-
solie offered to investors in its Shallow Offshore tent requirements.
(SHO) bidding round, which began in late 2020. The US major “should give preference to
The PSC for the block was signed by Staatsolie’s materials, services and products offered by
CEO Annand Jagesar, Chevron’s Suriname Surinamese companies,” it explained. “The con-
country manager Channa Kurukulasuriya and dition is that they meet the quality, price and
Rekha Bissumbhar, the director of Staatsolie’s other commercial requirements. In this way,
subsidiary Paradise Oil Co. (POC). Suriname’s local participation within the offshore oil indus-
Natural Resources Minister David Abiamofo try is stimulated.”
witnessed the signing. Chevron is the operator of both Block 7 and
The terms of the new PSC are outlined in Block 5. It originally held a stake of 60% in Block
the joint operating agreement (JOA) signed 5, with Staatsolie taking the remaining 40%. Last
between Chevron and POC, Staatsolie said. December, it transferred a 20% stake in the pro-
The JOA contains a provision that will “enable ject to Shell (UK) under a farm-in deal. ™

Blocks 5 and 7 were part of Staatsolie’s Shallow Offshore (SHO) bidding round (Image: Staatsolie)

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