Tullow Oil has agreed to a tie-up deal with Staatsolie, the state oil company of Suriname.
The agreement allows Tullow access to “block 47”, a 2,369-square kilometer deepwater exploration license. The two sides will share a production contract for oil extracted from the block.
Tullow, an independent UK-based exploration and production company, will make initial sounding of the area next year and drill in the years following that.
Tullow will maintain a 100 per cent interest during the exploration of the area but Staatsolie has the option to take a 20 per cent interest during the development and production phases.
Suriname, situated between French Guiana to the east, Guyana to the west and Brazil to the South, is the smallest sovereign state in South America. It is the only Dutch-speaking region in the western hemisphere outside of the Netherlands.