SEATTLE (Oil Monster): ExxonMobil and PETRONAS has entered into a Letter of Agreement (LoA) with the state-owned oil and gas company Staatsolie Maatschappij Suriname N.V. towards exploration and development of the natural gas discovery offshore Suriname. The natural gas discovery was made in 2020 with the Sloanea-1 exploration well in Block 52.
ALSO READ:
ExxonMobil and Chevron Eyes SubstantialSurge in Production Activities in the Basin
ExxonMobil Completed Acquisition of Denbury
The natural gas discovery by PETRONAS comprised of a small quantity that it said was commercially unattractive to develop. The development of the offshore gas field posed several challenges. PETRONAS and Staatsolie have been involved in discussions over the past several years to further explore the natural gas discovery, which has ultimately led to the LoA.
As per agreement, PETRONAS will start drilling the Sloanea-2 appraisal well in April this year. Also, it plans to carry out a production test as well.
The LoA is important for PETRONAS and ExxonMobil to proceed with the Sloanea-2 well. Further to drilling of the appraisal well, the feasibility of a commercial gas field will be determined. If found feasible, the first natural gas production is expected to commence by 2031. The LoA envisages the development of possible commercial natural gas field via an FLNG (Floating Liquefied Natural Gas) project.
