British oil and gas giant Tullow Oil Plc (LON:TLW) has signed a heads of agreement with Staatsolie, the state oil company of South American republic Suriname, which should enhance Tullow's portfolio of high-impact exploration acreage in the emerging Suriname-Guyana Basin. The deal covers Block 47, a 2,369 sq km deepwater exploration licence offshore Suriname and is a precursor to a finalised Production Sharing Contract between the two sides.

Tullow is planning to acquire seismic data over the area during 2011 and is expected to drill wells as part of its medium-term exploration programme in the Equatorial Atlantic region of South America. Tullow will operate the licence with a 100% interest during the exploration phase. Staatsolie, has the option to participate during the development and production phases with a 20% interest.

Angus McCoss, Tullow’s exploration director, said: “Tullow is very pleased to have signed this heads of agreement with Staatsolie for such an exciting block in the Equatorial Atlantic region of South America. The group is seeking to replicate the transformational success achieved with the Jubilee field in Ghana and this new acreage complements our existing positions in Guyana and French Guiana.”

Last week, Tullow reported a strong performance in the first four months of 2010 and said the outlook for 2010 was “very positive”. It pointed to significant progress on its Ugandan pre-emption and farmdown, while the Jubilee Phase 1 development project remains on track for first oil in the fourth quarter and the Tweneboa-2 appraisal well has established Tweneboa as a major oil and gas-condensate field. The period also saw Tullow strengthen its balance sheet by completing a £925m equity placing. On Friday, the company’s shares closed at 1108p, down 37p.

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