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Exxon Mobil (NYSE:XOM) and Malaysia’s Petronas have agreed to extend exploration for a gas discovery off the coast of Suriname, and are considering the potential for a floating LNG project, Reuters reported Monday.
Suriname’s national oil company Staatsolie said Exxon (XOM) and Petronras committed through a letter of agreement to further explore the Sloanea-1 discovery and make feasible the development of a commercial gas field in Block 52.
The Suriname firm said a key component is the guarantee of a tax-free period of 10 years from the start of production, which it said is stipulated in the letter of agreement with government approval.
The deal, which reportedly was signed by executives from Exxon (XOM), Petronas and Staatsolie, serves as the basis for further negotiations for a gas addendum to the production sharing contract they signed in 2013 for Block 52.