KEY POINTS
- TotalEnergies prepares to invest $10 billion in Suriname’s offshore oil.
- The project will produce 200,000 barrels per day by 2028.
- Suriname aims to replicate Guyana’s success and boost its economy.
TotalEnergies is preparing to make a final investment decision of more than $10 billion for a major oil and gas development project offshore Suriname. The French company is looking to replicate ExxonMobil’s success in neighbouring Guyana.
Earlier this month, TotalEnergies announced the launch of development studies for the project in Block 58, offshore Suriname, where it is the operator with a 50% interest, alongside APA Corp.
The appraisal of the Sapakara South and Krabdagu oil discoveries in Block 58 concluded in August 2023. TotalEnergies tested three wells and confirmed, “combined recoverable resources close to 700 million barrels for the two fields.”
“These reserves are located in water depths between 100 and 1,000 meters,” TotalEnergies said in a Sept. 13 press release. “They will be produced through a system of subsea wells connected to an FPSO unit. The FPSO will be located 150 kilometres off the Suriname coast with a production capacity of 200,000 barrels per day.”
Expected investment decision by the end of 2023
The company added that a final investment decision is expected by the end of this year, with the first production anticipated in 2028. This would mark Suriname’s first oil and gas development project, officially establishing the country as a player in offshore energy.
Reuters cited sources familiar with the project saying an investment decision for the $10 billion project is expected to be announced on Tuesday. However, the CEO of Suriname’s state-owned company said he had expected the decision in early 2024.
Suriname Aims for energy boom like neighbouring Guyana
Last week, the head of Suriname’s state-run company Staatsolie said it was “highly likely” that Staatsolie would manage to raise funds to acquire a 20% stake in the project. Suriname currently produces about 16,000 barrels of oil per day. The country hopes its territorial waters contain sufficient hydrocarbon resources. Such resources could fuel an oil boom similar to Guyana’s.
This potential boom could help resolve Suriname’s economic crisis. It could also lift the nation, with a population of less than 700,000, out of poverty.
