Positive Investment Decision for Suriname’s Block 58

By Ank Kuipers and Marianna Parraga

PARAMARIBO (Reuters) – France’s TotalEnergies (EPA:TTEF) and U.S. APA Corp announced a positive investment decision for Suriname’s promising Block 58 oil and gas project, expected to begin offshore output.

TotalEnergies aims to start production at the $10.5 billion project in the first half of 2028. Reuters reported on the financial greenlight agreement on Monday.

Suriname seeks to replicate the success of neighboring Guyana, where Exxon Mobil (NYSE:XOM) has discovered over 11 billion barrels of oil and gas resources.

The South American nation is working to secure larger revenues via a legal framework with higher royalties, taxes, and signing bonuses, all intended for reinvestment in healthcare and local content.

The announcement occurred at Suriname’s presidential cabinet, attended by President Chan Santokhi, TotalEnergies’ CEO Patrick Pouyanne, APA’s CEO John Christmann, and Staatsolie’s CEO Annand Jagesar.

President Santokhi stated, “Our policy, and that of any government, is to significantly raise the living standards of our population.”

Fast-Track Development

TotalEnergies and APA will develop the Sapakara and Krabdagu fields, now named “Gran Morgu”, with recoverable resources estimated at over 700 million barrels.

Pouyanne expressed pride in the rapid development, taking only one year from well appraisal to the final investment decision (FID).

A Floating Production Storage and Offloading (FPSO) facility is being constructed in Asia, capable of 200,000 barrels per day, set to be one of the company’s largest. Related contracts represent a total of $7 billion.

Field Development: A total of 32 new wells will be drilled as part of the approved field development plan.

TotalEnergies, the project operator, plans to recover about $1.4 billion spent on exploration since 2019.

Staatsolie is raising funds to secure a 20% stake in the project and has secured an initial $175 million payment. More negotiations with banks and a bond offer are underway for a second payment, according to CEO Jagesar.

Pouyanne mentioned that the deadline for Staatsolie to complete its investment could be extended to December next year if necessary.

APA’s CEO Christmann emphasized the geological potential located in the Atlantic Margin’s deep waters, leading to significant discoveries in Guyana, Suriname, and Brazil.

CEO Jagesar stated, “FID is a point of no return. Suriname will never be the same.”