Total enters multi-million dollar farm-in deal with Apache for Suriname acreage

Must Read

Heavy oil at Orinduik Block becoming more attractive as Venezuela’s supply dwindles – Gil Holzman

Even though the oil discovered in the Jethro and Joe wells at the Orinduik block turned out to be...

Regulating the sale of Guyana’s crude oil lifts’ entitlement

This provision is inevitably controversial because it provides for the parties not simply to overlift crude oil that may...

Total deploys oil rig to South Africa for rare frontier drilling

(Bloomberg) –Total SA has deployed a rig to South Africa to look for more oil near a massive discovery,...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

French oil company Total (TOTF.PA) said on Monday that it would pay a bonus of $100 million as part of its previously announced deal with U.S. peer Apache (APA.N) to develop a block off Suriname.

“Total is pleased with this significant entry in Suriname where Total will become the operator and bring its deepwater expertise. The new license expands our positions in the Guyana-Suriname Basin, a highly favorable petroleum province,” said Arnaud Breuillac, president of exploration & production at Total.

Under the terms of the agreement, Apache and Total will each hold a 50% working interest in Block 58, which comprises approximately 1.4 million acres in water depths ranging from less than 100 m to more than 2,100 m. Apache will operate the first three exploration wells in the block, including the Maka Central-1 well, and subsequently transfer operatorship to Total.

In exchange for a 50% working interest, Apache will receive various forms of consideration, including: $5 billion of cash carry on Apache’s first $7.5 billion of appraisal and development capital;  25% cash carry on all of Apache’s appraisal and development capital beyond the first $7.5 billion; various cash payments in conjunction with closing of the joint venture agreement and future production from joint development projects; and reimbursement of 50% of all costs incurred to date in Block 58.   Apache and Total have also agreed to bear their proportionate working interest share of costs on all future exploration wells.

“We are very pleased to team up with Apache and Staatsolie, and to become operator of this promising license where we will bring our deepwater expertise. It is indeed a unique exploration opportunity in a prolific basin,” said Patrick Pouyanné, chairman and CEO of Total.

- Advertisement -

Latest News

Heavy oil at Orinduik Block becoming more attractive as Venezuela’s supply dwindles – Gil Holzman

Even though the oil discovered in the Jethro and Joe wells at the Orinduik block turned out to be...

Regulating the sale of Guyana’s crude oil lifts’ entitlement

This provision is inevitably controversial because it provides for the parties not simply to overlift crude oil that may have been scheduled to be...

Total deploys oil rig to South Africa for rare frontier drilling

(Bloomberg) –Total SA has deployed a rig to South Africa to look for more oil near a massive discovery, in a rare example of...

Oil can help Guyana feed the region, become leader in renewables – UK High Commissioner

British High Commissioner to Guyana, Greg Quinn, says the new oil producing country now has a real opportunity to use those revenues to strengthen...

Rystad Energy warns 2nd COVID-19 wave could see oil demand losing another 2.5 million bpd

As the number of confirmed new COVID-19 cases surges to new global highs of beyond 200,000 per day, a second wave of the pandemic...

More Articles Like This