KEY POINTS
- TotalEnergies plans to develop Suriname’s first major offshore oil project in Block 58.
- The project could generate between $16 billion and $26 billion in revenue.
- The project’s final decision is expected by the end of 2024, with production slated for 2028.
TotalEnergies, a French multinational oil and gas company, is expected to make a final decision on a $9 billion oil and gas project in Suriname’s offshore Block 58.
This project is significant as Block 58 is located near Guyana’s Stabroek block, where ExxonMobil has discovered over 11 billion barrels of oil. After completion, Block 58 would represent Suriname’s first major commercial offshore oil find.
Major advancement for Suriname’s future
According to a report by OilPrice, Patrick Pouyanne, CEO of TotalEnergies, met with Suriname’s President Chan Santokhi and Staatsolie’s head, Annand Jagesar, to discuss the project’s potential impact.
Staatsolie, the state-owned oil company, may take up to a 20 percent stake in the project, which many see as transformative for Suriname.
“Today marks a historic day for our nation,” Jagesar stated, emphasizing the project’s potential economic impact. He projected that Suriname could generate between $16 billion and $26 billion in revenue from the development and urged the country to reinvest the funds wisely to avoid the mistakes made by oil-rich nations like Venezuela and Nigeria.
Road to the final decision
TotalEnergies and its American partner, APA Corporation, have already committed $1.3 billion for exploration in Block 58. Engineers plan to complete further work by the end of 2024, which could lead to a final investment decision. If approved, production may start as early as 2028.
The project aims to produce 200,000 barrels of oil per day, with natural gas supporting the oil output. This development would help Suriname convert its large oil reserves into a great economic advantage.
