Aug 14, 2020 News
The Republic of Suriname is facilitating exploration in a concession at its maritime border with Guyana, called Block 58. The companies granted the concession, Apache and Total, have managed to make three discoveries since the year began.
In January, Apache announced the first discovery at the Maka Central-1 well.
Energy Consultancy Group, Wood Mackenzie said that the discovery is estimated to contain 300 million barrels of oil, 150 million barrels of condensate and 1.4 trillion cubic feet of gas. The discovery excited those in Suriname who were mobilised by the many discoveries ExxonMobil managed to make deep in Guyana’s waters. Apache had identified more than 50 drillable prospects in Block 58 alone.
At an oil and gas conference in Trinidad and Tobago in February, the Managing Director and Chief Executive Officer of Suriname’s state-owned oil company, Staatsolie, had said that the country is in for an exciting year.
Sure enough, in April, Apache announced a second significant oil discovery at Block 58’s Sapakara West-1 well. Wood Mackenzie said that it expects the two wells to produce with a Floating Production, Storage and Offloading (FPSO) vessel at a capacity of about 150,000 barrels per day. It also said that Suriname may be on its way behind Guyana with another oil boom.
Last month, what is probably the most exciting of the Block 58 discoveries happened. Apache announced a “major” find at its Kwaskwasi-1 well. The discovery is being called a giant, as Apache reported 912 feet of net oil. In comparison, ExxonMobil’s massive Liza discovery saw the company reporting 295 feet.
Apache now intends to capitalise even more on its momentum, with the fourth exploration prospect in Block 58, Keskesi East-1. The company said that the prospect “will be drilled immediately following conclusion of operations at Kwaskwasi.”
Block 58 is 1.4 million acres, as opposed to Guyana’s Stabroek Block at 6.6 million acres. The two blocks are connected at the maritime border.
The Production Sharing Contract (PSC) for Block 58 was signed in 2015 with Apache, then, Total farmed in late last year with a US$100M signing bonus paid to Apache.
Guyana and Suriname are fortunate to control waters in the Guyana-Suriname basin, the hottest exploration destination on the planet.
However, Suriname’s management of its patrimony has reaped better projected rewards for the country. If oil is produced at Block 58, the country will rake in 36 percent of the revenue share. However, with the more lucrative Stabroek Block in Guyana, the country’s share of revenue is a paltry 14.5 percent.
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