Kosmos Energy has entered into a farm-out agreement with a subsidiary of the Hess Corporation, Hess Suriname Exploration, covering the Block 42 contract area offshore Suriname.

Under the terms of the agreement, Hess will acquire a one-third non-operated interest in the Block 42 contract area from both Chevron and Kosmos.

As part of the agreement, Kosmos said that Hess would fully fund the cost of a 6,500 square kilometer 3D seismic survey, subject to an agreed maximum limit, inclusive of Hess’ share, expected to start in the third quarter of 2016.

Additionally, Kosmos stated, Hess would disproportionately fund a portion of the first exploration well in the Block 42 area, subject to an agreed maximum limit, inclusive of Hess’ share, contingent upon the partnership entering the next phase of the exploration period. The agreement is subject to certain customary closing conditions.

Andrew G. Inglis, chairman and chief executive officer, said: “Given recent industry success in the basin, Suriname is a top ranked opportunity in our exploration portfolio. This agreement with Hess, executed in an industry environment of capital constraints, validates the quality of our acreage position and the ongoing work to mature a number of significant prospects toward drilling.”

Upon closing of the transaction, Kosmos, Chevron and Hess will have 33.33% interest in the block each, with Kosmos acting as the operator.

Kosmos has held rights to conduct exploration in the Block 42 and Block 45 contract areas since 2011 under production sharing contracts with the Government of Suriname. The blocks are contiguous and cover more than 11,000 square kilometers.