International oil group Hess Exploration Limited has immediately terminated its operations in Block 59, northwest of Suriname. With this, the former concession area lapses completely back to Staatsolie and becomes available again to third parties in the international license market.
Hess completed the minimum required work in the current exploration phase, which ends July 8, but chose not to exercise an option to continue. Earlier in July 2024, ExxonMobil Exploration and Production Suriname B.V. and Equinor Suriname B59 B.V. also withdrew, leaving Hess as the sole title holder.
The production sharing agreement (PSC) that Staatsolie entered into with the three multinational parties in July 2017 covered an area of about 11,480 km² and water depths between 2,700 and 3,500 m. Despite the deployment of more than 6,000 km of 2D and 9,000 km² of 3D seismic surveys, the partners concluded that the risks for drilling campaigns outweighed the potential returns. Hess also could not find a funding or joint venture partner to further develop the block commercially.
With the return of Block 59, Staatsolie will again have a free hand to enroll the area in its licensing strategy. Currently, about half of Suriname's maritime zone is already contracted through PSCs to various international oil and gas players.
At its core, a PSC allows participating companies to share risks and investments in the exploration, development and production phases. Decisions about continuation or exit are weighed based on a global project portfolio and the outcome of technical and market risk assessments.
