ExxonMobil has announced its decision to exit an offshore exploration block in Suriname, transferring its 50% stake in Block 52 to its partner, Petronas. The move comes as part of Exxon’s ongoing asset evaluation strategy, according to a statement from Staatsolie, the state-owned oil company of Suriname.
Following the transfer, Petronas will hold sole ownership of the exploration rights to Block 52, which has been the subject of joint operations between the two companies since 2013. Despite an initial gas strike in 2020, the discovered volumes were deemed commercially unviable, leading the partners to extend their exploration efforts earlier this year. This included the drilling of a second appraisal well in an attempt to improve the economic outlook for the block.
The exploration agreement also stipulated a 10-year tax-free period starting from the commencement of production, a key component of the project’s feasibility, which requires government approval.
While Exxon has opted to withdraw from Suriname’s offshore exploration, its departure contrasts with the success of other oil giants in the region. In nearby Guyana, Exxon has enjoyed significant exploration success. However, other companies, including TotalEnergies and APA Corp., have made substantial progress in Suriname. Since 2020, they have made five significant oil discoveries in Block 58, with the most recent being the Krabdagu wildcat discovery in February 2022. Despite a dry well drilled later that year, the potential of Suriname’s offshore resources remains a point of interest for the energy industry.
Earlier this month, TotalEnergies and APA Corp. made a final investment decision on Block 58, committing up to $10.5 billion to develop the discovered oil and gas resources. Estimates put the oil in place at 700 million barrels, further bolstering the view that Suriname may follow Guyana’s lead as a rising energy hub in the region.
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