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By Ray Chickrie
Caribbean News Now contributor
PARAMARIBO, Suriname -- Petronas, Malaysia’s multinational state oil company, is the latest entry in Suriname oil exploration, after signing a $25 million investment deal on Friday with Suriname State Oil Company (Staatsolie) for a production-sharing contract for an offshore block about 130 kilometers (81 miles) off the coast of Paramaribo, Suriname.
Petronas now joins Norway’s Statoil Hydro, Apache Corporation, Murphy Oil, Kosmos Energy, and Chevron, as Suriname ramps-up oil exploration after the discovery of the Zaedyus well in neighbouring French Guiana which, according to Tullow geologists, mirrors the opposite side of the Atlantic, where in Ghana the huge Jubilee field was discovered in 2007.
According to a Staatsolie press release, the contract is divided into an exploration, a development and a production period. The first phase will last three years. Petronas will drill an exploration well and collect seismic data. Petronas will absorb all costs in this phase. Only when a commercial discovery is made and which is brought into production, will the cost be refunded by Staatsolie to the Malaysian oil giant.
Staatsolie, according to the contract, will take up to 20 percent investment in the project. The agreement contains provisions on mandatory minimum work program, direct revenue for the state (royalties and taxes), distribution of oil profits and management of operations. Also, there are clauses on inspection, safety, environmental as well as provisions for employment for local context; training and social programs are also part of the production-sharing contract.
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