ExxonMobil Corporation (NYSE:XOM) and its affiliate Production Suriname, in partnership with Petronas Suriname E&P, a subsidiary of Malaysia’s Petronas, have announced a significant hydrocarbon discovery in Block 52 offshore Suriname. This marks the third major find in this block since 2020, highlighting the Suriname-Guyana basin’s potential for substantial oil and gas reserves.

Details of the Discovery

The Fusaea-1 exploration well, drilled by the Noble Voyager drillship, is located approximately 170 kilometers offshore and 9 kilometers east of the Roystonea-1 discovery. The well reached a depth of 5,227 meters and encountered multiple oil and gas-bearing sandstone reservoirs from the Campanian age. Notably, the drilling operation was completed without any Lost Time Incidents.

Both Petronas and ExxonMobil are conducting further evaluations to assess the full extent of the discovery and its potential integration with previous finds, Roystonea-1 and Sloanea-1.

Statements from Petronas Leadership

Datuk Adif Zulkifli, Petronas’ executive vice president and CEO of Upstream, emphasized the significance of the Fusaea-1 results, stating that they reinforce Petronas’ position in Suriname’s hydrocarbon resources, building on prior discoveries in the region.

Mohd Redhani Abdul Rahman, Petronas’ vice president of Exploration, noted that the success of Fusaea-1 reflects improvements in their understanding of the area, enhancing the potential for oil and gas development in Block 52.

Operational and Strategic Developments

Block 52 covers an area of 4,749 square kilometers, situated north of Paramaribo, Suriname’s capital. Petronas operates the block with a 50% interest, while ExxonMobil holds the remaining stake. This partnership underscores the strategic importance of the Suriname-Guyana basin for future energy development.

In July 2023, Petronas awarded a drilling contract to Noble Corporation’s Noble Discoverer rig, initially set to start in August 2023. However, drilling responsibilities were later transferred to the Noble Voyager rig in January 2024. Petronas has since extended the drilling contract to continue operations in Block 52 at a daily rate of $470,000.

Beyond Block 52, Petronas operates Block 48 and Block 63 with a 100% interest and holds a 30% non-operating interest in Block 64. The company remains committed to its exploration and production activities in the region while pursuing new energy projects globally.

Broader Implications

This discovery is part of a broader strategy by both ExxonMobil and Petronas to expand their hydrocarbon portfolios in key regions. Recently, Petronas signed a new production-sharing contract and extended an existing one off the coast of Indonesia to increase its hydrocarbon output. In 2023, Petronas and its partners achieved 19 exploration discoveries and two appraisal successes in Malaysia, showcasing its strong exploration capabilities.

The continued success in Suriname’s Block 52 not only enhances Petronas’ and ExxonMobil’s resource base but also reinforces the Suriname-Guyana basin’s status as a major emerging hydrocarbon province. Ongoing exploration and development efforts in this region are expected to significantly contribute to the global energy supply, meeting increasing demands and supporting energy security.

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