Energy company Apache Corp. is going ahead with a 50-50 joint venture with France’s Total S.A, for an offshore drilling project in Suriname, a northeastern South American.
The joint venture will explore Block 58, which has around 1.4 million acres in water depths ranging from less than 100 meters to more than 2,100 meters. Apache’s CEO and President John J. Christmann indicated that Total’s offshore operational experience and global presence make it an ideal partner for the project.
Along with the 50% working interest, Apache will also receive $5 billion of cash carry on the company’s first $7.5 billion of appraisal and development capital and a 25% cash carry on all Apache appraisals that exceed the $7.5 billion mark.