France’s Total has signed an agreement with Apache Corporation to acquire a 50 per cent working interest and operatorship in the highly prospective Block 58 offshore Suriname, in Guyana.
Block 58 is located on trend with the prolific discoveries in the adjacent Stabroek block in Guyana. The Maka-1 exploration well is currently being drilled on the block in a water depth of about 1,000 meters and preliminary results confirm the prospectivity of the license.
Two additional exploration wells are planned to be drilled by Apache after the completion of Maka- 1 before transferring the operatorship to Total.
“Total is pleased with this significant entry in Suriname where Total will become Operator and bring its deepwater expertise. The new license expands our positions in the Guyana-Suriname Basin, a highly favourable petroleum province,” said Arnaud Breuillac, president, Exploration & Production at Total. “We look forward to working alongside with Apache, and Staatsolie, the national oil company.”
At closing Total will pay a bonus of US$100 million, plus its share of past costs. In the event developments are launched, Total will provide a reimbursable carry for a share of Apache’s capital expenditure for the development phase and make some additional payments linked to the development and production. Cost of carry and payments would then represent an acquisition cost of around $2 per barrel.