Your account already exists. Please login first to continue managing your settings.
The major’s wholly-owned subsidiary Chevron Global Energy Inc. will be assigned a 50% working interest in blocks 42 and 45 offshore Suriname through its agreement with Kosmos.
Under the agreement, Kosmos will hold a 50% working interest and remain operator of both blocks until the end of the exploration phase, with Chevron to assume the remaining 50% working interest and to be operator following any commercial discoveries.
Expectations for the northeast margin were boosted last year by the discovery of the Zaedyus field in deepwater offshore neighbouring French Guiana by operator Tullow Oil.
Brian F. Maxted, chief executive officer, said, “Our agreement with Chevron for blocks 42 and 45 unites the interests of both organizations in pursuing a potentially substantial and significantly underexplored petroleum system. We see the combination of Kosmos’ exploration expertise and Chevron’s industry-leading deepwater development technology as a positive for both companies and a significant benefit for Suriname. Together, we are aggressively advancing our exploration of the blocks, with plans to commence an approximately 5,000 sq km 3D seismic program later this year. First drilling is currently planned for 2014.”
Blocks 42 and 45 are approximately 250 km (155 miles) from Paramaribo and cover a combined area of approximately 2.8 million gross acres, at water depths ranging between 200-2,600 m (650-8,500 ft).
Kosmos originally executed production sharing contracts for both blocks in December last year. The agreement is subject to certain customary closing conditions.
The independent has said previously that it sees Suriname as an opportunity to explore for the Upper Cretaceous stratigraphic play type along the northeast margin of South America, and that its blocks contain the same petroleum system as the discovery off French Guiana. Its nearly 3.0 million gross acre position in the Suriname-Guyana Basin was the company’s first portfolio expansion outside of Africa.
“This agreement enables us to explore for new resources in this frontier basin,” said George Kirkland, vice chairman, Chevron. “These blocks are on trend with new deepwater Cretaceous discoveries in the region.”
Ali Moshiri, president of Chevron Africa and Latin America E&P Co., added, “We are very pleased to participate in Suriname’s emerging energy sector. These blocks will expand our exploration portfolio in Latin America.”