Total to acquire 50% operating stake in Suriname Block 58 from Apache
Suriname Block 58 : French oil and gas giant Total has agreed to acquire a 50% operating stake in Block 58 offshore Suriname from Apache Corporation in a move to further grow its presence in the Guyana-Suriname basin.
The two oil and gas companies will now have 50% stakes each in Block 58, which is located on trend with the series of discoveries made in the adjacent Stabroek block offshore Guyana.
Currently, an exploration well called Maka-1 is being drilled on Block 58 in a water depth of nearly 1,000 meters. Total said that preliminary results from the offshore drilling confirm the prospectivity of the license.
Two more exploration wells are being planned to be drilled by Apache after wrapping up Maka-1 drilling before the company transfers the operatorship of the offshore Suriname block to Total.
Arnaud Breuillac – President of Total Exploration & Production, commenting on the Suriname Block 58 deal, said: “Total is pleased with this significant entry in Suriname where Total will become Operator and bring its deepwater expertise. The new license expands our positions in the Guyana-Suriname Basin, a highly favorable petroleum province.
“We look forward to working alongside with Apache, and Staatsolie, the national oil company.”
Suriname Block 58 map. Image courtesy of Total.
At the closing of the deal Total will pay Apache a bonus of $100 million along with its share of past costs.
If developments at the offshore block are launched, the French oil and gas giant will offer a reimbursable carry for a share of Apache’s capital expenditure for the development phase alongside certain additional payments associated with the development and production. Cost of carry and payments in such case will then represent an acquisition cost of nearly $2 per barrel, said Total.
John J. Christmann – CEO and President of Apache, commenting on the Suriname Block 58 deal, said: “Suriname Block 58 presents a unique, large-scale oil resource opportunity, and we are very pleased to welcome Total to our existing partnership with Staatsolie, the national oil company of Suriname. Total’s extensive offshore operational experience and global footprint make it an ideal partner for a block of this size and potential.
“Upon meeting certain drilling commitments, the partnership has the rights to explore the entire block through mid-2026 without acreage relinquishments. This provides for a thorough evaluation of the multiple play types we have identified in this emerging oil-prone basin.”