The initial period for Block 42 offshore Suriname is for four years from its effective date
(December 13, 2011). The Block 42 exploration phase may be extended to December 2020 at our
election. We are currently in the first exploration period ending on December 12, 2015. In the event of
commercial success, the duration of the contract will be 30 years from the effective date or 25 years
from governmental approval of a plan of development, whichever is longer.
The initial period for Block 45 offshore Suriname is for three years from its effective date
(December 13, 2011). The Block 45 exploration phase may be extended to December 2018 at our
election. We are currently in the first exploration period ending on December 12, 2014. In the event of
commercial success, the duration of the contract will be 30 years from the effective date or 25 years
from governmental approval of a plan of development, whichever is longer.w
We have petroleum contracts covering Block 42 and Block 45 offshore Suriname. In November
2012, we finalized the assignment of a 50% participating interest in Block 42 and Block 45 to Chevron
Global Energy Inc. (‘‘Chevron’’) reducing our original interest from 100%. We retain a 50%
participating interest in the blocks and remain the operator for the exploration phase of the petroleum
contracts.
We are currently assessing prospectivity on license areas in Suriname, and accordingly information
concerning prospects, if any, on such recently acquired license areas is not yet available. We currently
are, and plan to continue, processing seismic information to assess the prospectivity for these license
areas.
Our Reserves
The following table sets forth summary information about our estimated proved reserves as of
December 31, 2013. See ‘‘Item 8. Financial Statements and Supplementary Data—Supplemental Oil
and Gas Data (Unaudited)’’ for additional information.
All of our estimated proved reserves as of December 31, 2013, 2012 and 2011 were associated with
our Jubilee Field in Ghana.
Summary of Oil and Gas Reserves
2013 Net Proved Reserves(1)
Oil,
Condensate,
NGLs
Natural
Gas(2)
(MMBbl)
(Bcf)
2012 Net Proved Reserves(1)
Total
Oil,
Condensate,
NGLs
Natural
Gas(2)
(MMBoe)
(MMBbl)
(Bcf)
2011 Net Proved Reserves(1)
Total
Oil,
Condensate,
NGLs
Natural
Gas(2)
Total
(MMBoe)
(MMBbl)
(Bcf)
(MMBoe)
Reserves Category
Proved developed
Proved undeveloped
36
9
10
1
38
9
32
10
9
1
33
10
23
25
16
8
26
26
Total . . . . . . . . . .
45
11
47
42
9
43
47
24
51
(1)
Our unitized net interest is based on the 54.36660%/45.63340% redetermination split, between the WCTP Block and DT Block. See
‘‘Item 1A. Risk Factors—The unit partners’ respective interests in the Jubilee Unit are subject to redetermination and our interests in such
unit may decrease as a result.’’ Totals within the table may not add due to rounding.
(2)
These reserves represent only the quantities of fuel gas required to operate the FPSO during normal field operations. No natural gas
volumes, outside of the fuel gas reported, have been classified as reserves. If and when a gas sales agreement is executed, a portion of the
remaining gas may be reclassified as reserves. See ‘‘Item 1A. Risk Factors—We may not be able to commercialize our interests in any natural
gas produced from our license areas.’’
Changes for the year ended December 31, 2013, include an increase of 11 MMBbl of proved
reserves as a result of drilling and reservoir performance, which is partially offset by 8 MMBbl of
production during 2013. During 2013, approximately 1 MMBbl of proved undeveloped reserves from
December 31, 2012 converted to proved developed reserves as of December 31, 2013. During the year
ended December 31, 2013, we incurred $116.6 million of capital expenditures related to the Jubilee
Field Phase 1A development.
20