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Chevron (CVX), QatarEnergy Partner Over Suriname Block 5 PSC
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Chevron Corporation (CVX - Free Report) has entered into an agreement with QatarEnergy for the latter to acquire a 20% interest in a production sharing contract (PSC) in Block 5 offshore Suriname. Per the terms of the agreement, Chevron will retain 40% interest in the block. The remaining 40% will be owned by Paradise Oil Company, an affiliate of Suriname’s national oil company, Staatsolie.
Chevron is the operator of Block 5. The water depth at the site lies in the range of 98-145 feet. The financial details of the transaction have not been disclosed yet. The exploration license for Block 5 is advancing into the second phase, which includes the commitment to drill an exploration well.
Suriname’s current oil production is solely concentrated on its onshore resources. However, some major deepwater discoveries have been made offshore Suriname since 2019. The country’s discovered oil reserves currently stand at more than 2.4 billion barrels crude and liquids, with over 12.5 trillion cubic feet of gas, per a report by the energy consultancy firm Wood Mackenzie.
In December 2023, QatarEnergy had also signed a PSC for Block 65 in Suriname. Block 65 is operated by the British oil giant, Shell plc. Shell owns 60% interest in the block, while the remaining 40% is held by QatarEnergy.
Furthermore, TotalEnergies SE, QatarEnergy and Petronas have signed a PSC for Block 64 with Suriname’s national oil company. Following a bidding round organized by Suriname’s government, the block was awarded to TotalEnergies and its partners. Block 64 is now operated by TotalEnergies, holding a 40% interest, along with QatarEnergy and Petronas holding a 30% interest each.
QatarEnergy’s string of deals demonstrates its commitment to continue the exploration of offshore reserves in Suriname. The company has expressed its enthusiasm regarding the acquisition in Block 5, highlighting its new partnership with Chevron in the internation upstream sector.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
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Chevron (CVX), QatarEnergy Partner Over Suriname Block 5 PSC
Chevron Corporation (CVX - Free Report) has entered into an agreement with QatarEnergy for the latter to acquire a 20% interest in a production sharing contract (PSC) in Block 5 offshore Suriname. Per the terms of the agreement, Chevron will retain 40% interest in the block. The remaining 40% will be owned by Paradise Oil Company, an affiliate of Suriname’s national oil company, Staatsolie.
Chevron is the operator of Block 5. The water depth at the site lies in the range of 98-145 feet. The financial details of the transaction have not been disclosed yet. The exploration license for Block 5 is advancing into the second phase, which includes the commitment to drill an exploration well.
Suriname’s current oil production is solely concentrated on its onshore resources. However, some major deepwater discoveries have been made offshore Suriname since 2019. The country’s discovered oil reserves currently stand at more than 2.4 billion barrels crude and liquids, with over 12.5 trillion cubic feet of gas, per a report by the energy consultancy firm Wood Mackenzie.
In December 2023, QatarEnergy had also signed a PSC for Block 65 in Suriname. Block 65 is operated by the British oil giant, Shell plc. Shell owns 60% interest in the block, while the remaining 40% is held by QatarEnergy.
Furthermore, TotalEnergies SE, QatarEnergy and Petronas have signed a PSC for Block 64 with Suriname’s national oil company. Following a bidding round organized by Suriname’s government, the block was awarded to TotalEnergies and its partners. Block 64 is now operated by TotalEnergies, holding a 40% interest, along with QatarEnergy and Petronas holding a 30% interest each.
QatarEnergy’s string of deals demonstrates its commitment to continue the exploration of offshore reserves in Suriname. The company has expressed its enthusiasm regarding the acquisition in Block 5, highlighting its new partnership with Chevron in the internation upstream sector.
Zacks Rank and Key Picks
Currently, CVX carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , Sunoco LP (SUN - Free Report) and Energy Transfer LP (ET - Free Report) . SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, while Energy Transfer carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.