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