News wire — Oil producer Apache Corp and its project partner Total SA said on Thursday they have made a significant oil discovery off the coast of South America’s Suriname, their second this year.
Shares of Apache opened up 21% in early trading.
The discoveries come at a time when shale oil producers in North America are grappling with the worst oil price shock in decades, which has led several companies, including Apache, to cut spending for the year and slash dividends.
The conventional plays offshore Suriname are especially significant for Apache as it follows the U.S. oil and gas producer’s failed bet in the Alpine High region of the Permian basin, which has suffered from diving natural gas prices.
The company in February said it had stopped drilling in the Alpine High region of the Permian.
The second major discovery was made at the Sapakara West-1 well drilled offshore Suriname on Block 58, the companies said on Thursday.
Apache and Total had announced a joint venture deal to explore and develop Block 58 offshore Suriname in December.
Apache and Total team up for exploration off Suriname
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- Reuters
