Kosmos Energy entered into a farm-out agreement with Hess Suriname Exploration Ltd. under which Hess Suriname will acquire a one-third nonoperated interest in the Block 42 contract area offshore Suriname, the company said May 3.

Kosmos has held rights to conduct exploration in the Block 42 and Block 45 contract areas since 2011 under production-sharing contracts with the government of Suriname. The blocks are contiguous and cover more than 11,000 square kilometers (sq km).

Hess Suriname, a wholly-owned subsidiary of Hess Corp. (NYSE: HES will acquire the interest from both Chevron Corp. (NYSE: CVX) and Kosmos.

As part of the agreement, Hess will fully fund the cost of a 6,500 sq km 3-D seismic survey that is scheduled to begin in 2016’s third quarter. This survey is subject to an agreed maximum limit, inclusive of Hess’ share.

Hess will also fund a portion of the first exploration well in the Block 42 area, subject to an agreed maximum limit inclusive of its share, contingent upon the partnership entering the next phase of the exploration period.

The agreement is subject to certain customary closing conditions. Upon closing of the transaction, the interests in the Block 42 contract area will be as follows:

--Kosmos: Operator, 33.33%

--Chevron: 33.33%

--Hess: 33.33%.

Andrew G. Inglis, chairman and CEO of Kosmos, said that Suriname is a top-ranked opportunity in the company’s exploration portfolio. The agreement with Hess validates the quality of the company’s acreage position and ongoing work in the country.

Kosmos Energy is based in Dallas.

Offshore