QatarEnergy Expands Reach into Suriname’s Booming Oil & Gas Market

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QatarEnergy, the state-owned oil and gas giant of Qatar, has secured a strategic foothold in Suriname’s burgeoning oil and gas industry. The company announced on Thursday that it signed a deal to acquire a 20% interest in a production sharing contract for Block 5, an offshore exploration block in Suriname’s territorial waters.

Carving a Niche in a New Frontier

This move signifies QatarEnergy’s proactive approach to diversifying its upstream (exploration and production) portfolio. Suriname, a South American nation, is rapidly emerging as a significant player in the global oil and gas market. While current oil production is limited to onshore operations, significant deepwater discoveries since 2019 have painted a promising picture for the country’s offshore potential.

Collaborative Approach for Resource Development

The production sharing contract for Block 5 positions QatarEnergy as a key partner alongside established players. Chevron (CVX.N) will retain a 40% stake and serve as the block’s operator, leveraging its vast experience in offshore exploration and development. The remaining 40% interest is held by Paradise Oil Company, a subsidiary of Suriname’s state-owned oil firm Staatsolie. This collaborative approach ensures a balanced distribution of expertise and resources for successful exploration and production activities.

Untapped Potential Awaits

Energy consultancy Wood Mackenzie estimates that Suriname’s discovered resources hold immense potential. Their assessment suggests over 2.4 billion barrels of oil and liquids, alongside a staggering 12.5 trillion cubic feet of natural gas.  QatarEnergy’s entry into Block 5 comes on the heels of a similar move in December 2023, where they signed production-sharing contracts for three additional offshore blocks alongside Shell, TotalEnergies, and Petronas.

Fast-Tracking Development for First Oil

The most promising project amongst these blocks appears to be Block 58, situated adjacent to Exxon Mobil’s prolific Stabroek block in Guyana.  TotalEnergies, another partner in Block 58, has indicated a final investment decision by the fourth quarter of 2024, targeting production commencement by 2028. This timeline reflects the accelerated pace of development in Suriname’s oil and gas sector.

Block 5: A Stepping Stone for Future Exploration

While Block 58 represents the current frontrunner, Block 5, where QatarEnergy holds its newly acquired stake, shouldn’t be overlooked. Located in shallow water depths (30-45 meters), Block 5 is currently in its second exploration phase with a commitment to drill an exploratory well.  The success of this well could unlock the true potential of this block and pave the way for further exploration endeavors in Suriname’s offshore territory.

QatarEnergy’s CEO, Saad al-Kaabi, expressed enthusiasm about the partnership, highlighting their commitment to exploring Suriname’s promising basins and forging a successful collaboration with Chevron. This strategic move by QatarEnergy not only strengthens their upstream portfolio but also positions them as a key player in Suriname’s exciting oil and gas journey.