RE: CERP enter Suriname with zero upfront costs7 Oct 2019 12:29
Staatsolie signs production sharing contract with new partner
Oct 05, 8:33 AM
State oil director Rudolf Elias and Leo Koot, Executive Chairman of Columbus, sign the production sharing contract. (Photo: Staatsolie)
The production sharing contract (Production Sharing Contract, PSC) for the Road to Sea block between Staatsolie Maatschappij Suriname NV and its new partner Columbus Energy Resources PLC from England, was signed on Thursday. Columbus Energy Resources PLC will search for oil in this area, which has an area of ??901 km².
Columbus made an offer for the area on January 11. Rudolf Elias, Managing Director of Staatsolie, and Leo Koot, Executive Chairman of Columbus, signed the contract on behalf of the companies. The agreement is valid for 30 years. It has been agreed between the two parties that a minimum exploration program will be carried out during the first seven years.
All costs in the exploration phase are for the account of Columbus. Staatsolie has the possibility to participate up to a maximum of fifty percent in the development and production phases. If the exploration activities do not lead to a commercial find, Columbus will not be reimbursed and Staatsolie has no further obligations towards Columbus. In each PSC, Staatsolie has the option to participate as a contracting party for a certain percentage.
The production sharing contract pays attention to inspection, safety and the environment. Provisions have also been included for employment for the local management, training, social programs and the way in which facilities will be dismantled at the end of the work, says Staatsolie Corporate Communication.
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