Chevron Corp. received rights for exploration, development, and production for Block 5, offshore Suriname, through a recently signed 30-year Production Sharing Contract (PSC) with state oil company Staatsolie.
Costs in the exploration phase will be carried by Chevron. The exploration period, as set out in Chevron's PSC, will last 6 years, divided into three 2-year phases. A signing bonus of $30,875,000 will be paid by Chevron to Staatsolie after signing the PSC and a joint operating agreement (JOA). This is the first time Staatsolie will participate as a partner in offshore activities.
Block 5 is 2,235 sq km and is west of the shallow offshore area 120 km from the coast with water depth of up to 100 m.
Staatsolie retains the right to 40% participation in the block and will co-finance the possible development and production phase.
