June 17 (Reuters) - Suriname's state energy company

Staatsolie and an affiliate of Malaysia's oil firm Petronas on

Tuesday signed a production-sharing contract for exploring and

developing an offshore oil and gas block, Staatsolie said in a

release.

Suriname is on track to inaugurate offshore crude and

natural gas output soon after foreign companies including

TotalEnergies, APA and Petronas have

discovered reserves that can be commercially developed.

Staatsolie can opt for up to a 20% stake in each area.

For deepwater block 66, offered in a bidding round

between 2022 and 2023, Petronas' subsidiary Paradise Oil Company

is obtaining an 80% interest and becoming the area's operator

through the contract, while Staatsolie is retaining the

remaining 20%.

The Malaysian company has committed to drilling two

exploration wells during the first phase of the exploration

period, Staatsolie said in the release.

The block is located in the western part of the

Suriname-Guyana Basin, at water depths ranging from 1,000 to

2,200 meters, close to block 52, where Petronas is evaluating

several discoveries of oil and gas.

Petronas is now participating in a total of six offshore

areas in Suriname, and has so far made four oil and gas

discoveries. With the signing of this agreement, about 50% of

Suriname's offshore area is now under contract, Staatsolie said.