Petronas and ExxonMobil Achieve Third Hydrocarbon Discovery in Suriname’s Offshore Block 52

Petroliam Nasional Bhd. (Petronas) has announced a third hydrocarbon discovery in Suriname’s

offshore Block 52, a joint venture with ExxonMobil Corp. The Fusaea-1 exploration well, which

commenced drilling in February, reached a total depth of 5,227 meters (17,149 feet). It revealed

“several oil and gas-bearing Campanian sandstone reservoir packages,” Petronas stated. “Further

evaluation is underway to determine the full extent of this discovery and its potential for integration

with the recent Roystonea-1 and Sloanea-1 discoveries.” Mohd Redhani Abdul Rahman, Petronas

Vice President for Exploration, remarked, “The success of Fusaea-1 demonstrates our improved

geological understanding of this region, strengthened by breakthroughs in Roystonea-1 and

Sloanea-1. These discoveries have significantly enhanced the prospects and integrated development

potential within Block 52.” Petronas continues to focus on sustainable and high-value resource

exploration in selected regions as part of its portfolio rationalization efforts. Block 52, located in the

Suriname-Guyana basin, covers 4,749 square kilometers (1,833.6 square miles) north of Paramaribo,

Suriname’s capital. Petronas Suriname E&P BV operates Block 52, while ExxonMobil Exploration and

Production Suriname BV holds the other half. Petronas announced its first Block 52 discovery on

December 11, 2020, through the Sloanea-1 well, marking its first exploration success in Suriname.

The well yielded “several hydrocarbon-bearing sandstone packages with good reservoir qualities in

the Campanian section,” according to a Petronas press release at the time. Last month, Suriname’s

national oil and gas company Staatsolie Maatschappij Suriname NV revealed that the Block 52

partners agreed to further explore the Sloanea area for potential gas production. Staatsolie stated,

“The letter of agreement (LoA) is necessary for further exploration of the gas discovery made in

2020 with the Sloanea-1 exploration well in Block 52.” Initially considered commercially unattractive

due to its small quantity, the development of an offshore gas field poses more technical and

economic challenges compared to an offshore oil field. Nevertheless, discussions between Petronas

and Staatsolie have led to the LoA, with plans for Petronas to drill the Sloanea-2 appraisal well

starting in April 2024, followed by a production test. Staatsolie emphasized that the LoA outlines

the principles and conditions to enhance the feasibility of developing a commercial gas field in Block

52. An essential part of the feasibility is a ten-year tax-free period from the start of production,

granted with governmental approval. The LoA serves as a basis for further negotiations on a gas

addendum to the production sharing contract (PSC) for Block 52, signed in April 2013. In the event

of a gas discovery, the PSC mandates a negotiation of a “Gas Addendum,” which will establish the

procedures and conditions for assessing and potentially developing and producing the gas

discovery. Petronas aims to start gas production by 2031 if Sloanea-2 proves commercially

successful. Additionally, the construction of a floating liquefied natural gas facility is being

considered, according to Staatsolie.