6 months ago
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Staatsolie Maatschappij Suriname NV says it is looking ahead with confidence notwithstanding a fall in oil revenue at the state-owned company.
In a statement, Staatsolie said it will continue with developments in the offshore sector this year and beyond after reporting revenue of US$722 million for 2023. It said US$335 million has been contributed to the national treasury.
The 2023 annual accounts of the state-owned company was approved on Monday at the general meeting of shareholders, with Staatsolie and its subsidiaries, GOw2 Energy Suriname NV and Staatsolie Power Company Suriname NV, or SPCS, indicating that 2023 had been a very productive year.
According to the company, production targets had been met or exceeded. In 2023, Staatsolie, including its participation in the gold mine of Newmont Suriname LLC and Rosebel Gold Mines NV, and its subsidiaries GOw2 and SPCS, achieved a revenue of US$722 million, as against US$840 million the previous year.
It said the decline in revenue was due to a lower average oil price of US$77 in 2023, compared to US$93 per barrel in 2022. Pre-tax profit is US$426 million, as against US$430 million in 2022.
“Despite the lower oil price, the contribution to the state treasury increased by US$15 million to US$335 million (US$320 million in 2022). This payment consists of various taxes, dividends and royalties from Staatsolie’s participation in gold mines and partly of bonuses received for signing various offshore production-sharing contracts.
”In addition to dividends and taxes, Staatsolie and its subsidiaries contribute to society by investing in community projects. In 2023, approximately US$1.8 million will have been spent on these projects, which mainly focused on education, young people, seniors and healthcare. The company’s offshore partners have also spent approximately US$1.5 million on social projects, as stipulated in the production-sharing agreements with Staatsolie,” the statement said.
It said that last year, 6.27 million barrels of Saramacca Crude were produced, as compared with 6.14 million barrels the previous year.
The Staatsolie refinery produced 3.16 million barrels of high-quality diesel and gasolene, achieving the set goals.
The subsidiary, SPCS, generated approximately 1.60 million MWh of electricity, compared to 1.47 million MWh in 2022. Of the total, approximately 1.2 million MWh has been generated by the Afobaka hydroelectric power station and approximately 0.4 million MWh by the thermal power plant.
Another subsidiary, GOw2, has had significant growth in its retail market share in 2023, from 39 to 65 per cent, with the state-owned company saying the expansion and renovation of the GOw2 pumping stations, which began in 2022, will continue in the coming years.
In September last year, the CEO and chairman of the supervisory board of TotalEnergies, Patrick Pouyanné, announced the start of preliminary design studies for the development of the first offshore production field in Block 58 during his visit to Suriname.
The announcement came after successful assessment of the block’s two major oil discoveries, Sapakara South and Krabdagu, confirming reserves of around 700 million barrels in both finds combined.
In 2023, five production-sharing contracts, referred to as PSCs, were signed with international oil companies, with two of them being for blocks in the shallow offshore area, which were offered in the ‘Shallow Offshore Bid Round 2020-2021’.
The three other PSCs are for blocks that were part of the ‘Demerara Bid Round 2022-2023’. The ‘Shallow Offshore 2 Bid Round 2023-2024’ started in November 2023. This will close on May 31, 2024. Eleven shallow offshore blocks will be offered for exploration in this tender round.
Staatsolie said it is committed to the development of local content in the emerging Surinamese offshore oil and gas industry.
It said that the Blue Wave training programme was completed in 2023, providing local companies with tools to bring their business processes and standards to an internationally required level.
Staatsolie said it is encouraging its offshore partners to purchase goods and services locally, wherever and as much as possible, noting this is also included in the production- sharing contracts.
”In 2023, offshore parties and their contractors spent US$59 million in Suriname on goods and services. In 2022, this was US$98 million. Spending is currently mainly influenced by the number of wells that are drilled. In 2023 this was four wells, and in 2022 eight wells.”
– CMC
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