Houston-based Apache Corp. and French integrated oil and gas company Total SA formed a joint venture to develop Block 58 offshore Suriname.

Under the joint venture, Apache and Total will each get a 50% working interest in Block 58, according to a Dec. 22 news release. Apache said it will get a $5 billion cash carry on its first $7.5 billion of appraisal and development capital, 25% cash carry on the corporation's appraisal and development capital beyond the $7.5 billion, cash payments related to the joint venture's completion and production from other projects and a 50% reimbursement of all costs spent in Block 58.

Apache will also operate the first three exploration wells, which include the Maka Central-1 well, before transferring the operatorship of the block to Total. The two companies also agreed to bear their share of costs on all other exploration wells, according to the release.

Deeper drilling and testing operations are still ongoing at Maka Central-1, Apache CEO and president John Christmann said in the release. After the completion of the tests, the company will move its rig to the next location, Christmann said.

The closing of the deal, which has received all necessary approvals from Suriname, is slated to occur within three days.