Anglo-Dutch giant Shell has agreed to acquire a 20% working interest in Block 5 offshore Suriname from US supermajor Chevron.

Upon completion of the deal, Chevron will remain the block operator with a 40% stake. Suriname state-run oil company and market regulator Staatsolie holds the remaining 40%.

“The farm-out underlines the great interest there is in the offshore area of Suriname. Shell’s participation in Block 5 also means that more expertise is involved in the analysis, which will increase the chance of more exploration successes in the Surinamese offshore,” said Staatsolie.

Chevron in mid-October signed a production sharing contract for Block 5. As part of the deal, Staatsolie will participate as a partner in offshore activities for the first time via its subsidiary Paradise Oil.

Block 5 is located in water depths of less than 100 metres and is described as sitting in the migration pathway between established onshore fields - where Staatsolie has been producing heavy oil for decades - and new discoveries made by TotalEnergies and APA in Block 58.