TotalEnergies announces a 200,000 b/d oil project in Suriname

September 14, 2023

TotalEnergies will launch development studies for a large $9 billion, 200,000 barrels/day oil project off the coast of Suriname, with the “objective” of making a final investment decision “at the end of 2024”, announced its CEO Patrick Pouyanné in Paramaribo, capital of this small country in the northeast of South America.

“The Block 58 development studies that we are launching today constitute a major step towards the development of Suriname’s oil resources,” said Mr. Pouyanné, after a meeting with the Surinamese President, Chan Santokhi, and the CEO of the national oil company Staatsolie, Annand Jagesar.

“The final investment decision” (FID which decides whether to operate or not) is “expected for the end of 2024 with a production target in 2028”, according to a press release from TotalEnergies.

A former Dutch colony of 600,000 inhabitants, Suriname is plunged into a serious economic crisis, with galloping inflation and an external debt which has exploded. The country is impatiently awaiting the exploitation of oil reserves which promise to be significant and could transform it into El Dorado.

Its small neighbor Guyana has already started to exploit its deposits, which make it the first country in the world in oil reserves per capita.

Suriname’s offshore Block 58 is located near ExxonMobil’s massive area in western Guyana and is expected to become the country’s first offshore oil project.

“Appraisal of the two main oil discoveries, Sapakara South and Krabdagu, was successfully completed in August (…) and confirmed cumulative resources of nearly 700 million barrels for the two fields,” said the communicated.

“These reserves, located between 100 m and 1,000 m deep, will be produced by a system of underwater wells connected to an FPSO (floating production, storage and loading unit) located 150 km from the coast of Suriname, a capacity of 200,000 barrels per day”, underlines the TotalEnergies press release. “This project represents an investment of approximately $9 billion” (8.3 billion euros).

According to the press release, the French oil company is “the operator of Block 58, with a 50% stake alongside” the American “APA Corporation”.

However, President Santokhi clarified that Staatsolie would exercise his 20% participation right.

“20% of revenue goes to Staatsolie, which in plain terms means: $20 billion in revenue in 20 years. Revenue only for the state,” he said, indicating that this amount did not include taxes or the direct and indirect effects of production.

“All Surinamese. The financial sector, insurance, local industry, tourism, catering, hotels, taxis, everyone who is doing something, get ready!”, he said. “This is the market in billions that Suriname has been waiting for for years. I’ve said it before: there is light at the end of the tunnel.”

The president also considered that there was a need for “good governance” and taking advantage of the windfall to diversify the economy with a view to “sustainable development”.

TotalEnergies and its partners also hold production sharing contracts on shallow water Blocks 6 and 8 with Staatsolie, near the Guyana border. With a depth of between 30 and 50 meters, blocks 6 and 8 are adjacent to block 58.

TotalEnergies will operate the two blocks with a 40% stake, alongside QatarEnergy (20%) and Paradise Oil Company (POC), a subsidiary of Staatsolie (40%).