Suriname to invest big in first offshore oil project

The state-owned energy, oil and gas company, Staatsolie, says it plans to invest US$1.8 billion in its first offshore oil project, with the possibility of taking up a 20 per cent stake in the block.

In its 2023 annual report, Staatsolie said it fully intends to take up “our option for a stake of up to 20 per cent in this groundbreaking project, which at current investment levels will entail an investment of approximately US$1.8 billion”.

Staatsolie said it is considering all options to finance its participation, from its own cash reserves, bonds, loans, partnerships with strategic and/or non-strategic partners to other forms of financing or a combination of options.

The company estimates it will receive significant government revenues from the development of the offshore block. This amount, including royalties, profit oil and taxes, will be between US$16 billion and US$26 billion over the expected life of the production field of 20 years, depending on current oil prices, Staatsolie said.

French company TotalEnergies and American company APA Corporation are leading a US$9-billion development focused on two huge reservoirs, the Sapakara South and Krabdagu fields, which together contain an estimated 700 million barrels of oil. The Sapakara South and Krabdagu reservoirs are located at water depths ranging from 100 to 1,000 metres.

Staatsolie said that the development of the first offshore production field will involve drilling approximately 30 wells over a period of 2.5 years. The development proposal is being prepared, with an evaluation expected this year. First oil is expected in 2028.

– CMC