Apache Corp. and Total SA have formed a joint venture to explore and develop Block 58 offshore Suriname. The companies will each hold a 50% working interest in the block, which comprises about 1.4 million acres in water depths of less than 100 m to more than 2,100 m. Apache will operate the first three exploration wells in the block, including the Maka Central-1 well, and subsequently transfer operatorship to Total.
Upon meeting certain drilling commitments, the partnership has the rights to explore the entire block through mid-2026 without acreage relinquishments, providing for what Apache described as “a thorough evaluation of the multiple play types we have identified in this emerging oil-prone basin.”
“Apache and Total are encouraged by the preliminary information and test results from the two upper Cretaceous play types encountered thus far,” added John J. Christmann, chief executive officer and president of Apache. “Deepening and testing operations continue at Maka Central-1. Following the completion of these activities, the rig will be moving to the next location.”
In exchange for its 50% working interest, Apache will receive various forms of consideration, including: $5 billion of cash carry on Apache’s first $7.5 billion of appraisal and development capital; 25% cash carry on all of Apache’s appraisal and development capital beyond the first $7.5 billion; various cash payments in conjunction with closing of the joint venture agreement and future production from joint development projects; and reimbursement of 50% of all costs incurred to date in Block 58.
