ExxonMobil has pulled out of Suriname’s Block 52, where three hydrocarbon discoveries have already been made.
State oil company Staatsolie said the oil major’s local affiliate, ExxonMobil Exploration & Production Suriname B.V., formally indicated its withdrawal on November 14.
“The withdrawal is part of the ongoing evaluation of assets within ExxonMobil’s global portfolio,” Staatsolie said.
ExxonMobil will transfer its 50% working interest to PETRONAS Suriname E&P B.V., the operator of this block. As a result, PETRONAS now holds 100% of the working interest in Block 52. Activities in Block 52 will continue unchanged, Staatsolie said.
Block 52 covers an area of 4,749 square kilometers and is located north of Suriname’s coast. In 2020, a gas discovery was made in this block with the Sloanea-1 exploration well. PETRONAS is further investigating the gas discovery, including drilling the Sloanea-2 appraisal well earlier this year. Additionally, a Letter of Agreement (LoA) was signed with the contractor on March 4, 2024, to further explore the discovery. The LoA offers a 10-year tax holiday to incentivize gas development, among other things.
PETRONAS also announced significant discoveries at the Roystonea-1 and Fusaea-1 exploration wells in November 2023 and May 2024.
Staatsolie said the production-sharing contract allows parties to bring in partners or transfer their interests to another party. “This is a common practice in the oil and gas industry. Companies decide to partner in or exit an area based on global portfolio considerations and risk assessments. Staatsolie ensures that PETRONAS continues activities in Block 52 without interruption and trusts in the continuation of the strong partnership between the two companies,” Staatsolie said.
An investment decision for Block 52 would be the second in Suriname following one such decision by TotalEnergies and APA for the Gran Morgu oil project in the nearby Block 58. However, such a consideration is likely to be impacted by Exxon’s decision to withdraw.
Exxon continues to rack up investments in nearby Guyana, where it has discovered 11 billion oil-equivalent barrels. The company currently produces 660,000 barrels per day (b/d) offshore Guyana, in partnership with Hess and CNOOC, and is due to double production by 2027.