KUALA LUMPUR (Nov 14): Petronas said on Friday that a natural gas project in Suriname has been declared as viable commercially.

The declaration of commerciality of the Sloanea field in Block 52 with its South American partner Staatsolie Maatschappij Suriname NV marks the project’s readiness for development, the national oil-and-gas company officially known as Petroliam Nasional Bhd said in a statement.

The declaration “affirms the field’s economic feasibility towards its development and commercialisation”, said Mohd Redhani Abdul Rahman, the vice-president of Petronas’ international upstream assets.

The project is still subject to a final investment decision.

A final investment decision in the oil-and-gas industry typically takes years to make and is a sign that a proposed project will proceed following extensive studies and planning. The project owner then approves the budget, allowing contractors to acquire materials as well as equipment to begin work.

The declaration follows exploration success in 2020 “while underscoring both parties’ confidence in the hydrocarbon potential of Suriname’s offshore basin and the shared commitment to unlock Suriname’s deepwater potentials”, Petronas said.

Block 52 has seen three significant discoveries since the production sharing contract was signed in 2013. Petronas is the operator of Block 52 with 80% participating interest, while the remaining 20% participating interest is held by Paradise Oil Company, a Staatsolie subsidiary.

Petronas also holds interests in seven other offshore blocks in Suriname — Blocks 9, 10, 48, 53, 63, 64, and 66.