Suriname’s Oil and Gas Potential: A New Era of Opportunity
Suriname is on the brink of a transformative era in its oil and gas sector. According to Wood Mackenzie, a leading consultancy group, Suriname’s offshore resources include over 2.4 billion barrels of oil and 12.5 trillion cubic feet (tcf) of natural gas. When translated into oil equivalent, the 12.5 tcf of gas is approximately 2.2 billion barrels of oil equivalent (boe). Adding this to the 2.4 billion barrels of oil, Suriname’s total discovered resources amount to an impressive 4.6 billion boe, with gas comprising 48% of this total.
Key Offshore Developments
Block 52: Jointly held by ExxonMobil and Petronas, this block is a crucial part of Suriname’s emerging oil landscape.
Block 58: Shared by APA Corporation and TotalEnergies, this block is home to significant discoveries that could support a large-scale development. Wood Mackenzie reports that the Roystonea and Fusaea oil discoveries in Block 58 offshore Suriname could support a 100,000 barrels per day (b/d) development.
Block 53: Operated by APA Corporation (45% stake), with Petronas (30%) and CEPSA (25%) as partners, this block represents a collaborative effort to explore Suriname’s offshore potential.
Block 42: In 2023, drilling at the Zanderij-1 well in the Shell-operated Block 42 confirmed a working petroleum system with net oil pay, as noted by Hess.
Future Prospects and Projects
Total and APA are advancing Suriname’s first offshore oil project. Wood Mackenzie suggests Suriname could develop a standalone gas project, indicating that gas resources there of two tcf could anchor a floating LNG (liquid natural gas) development in the early 2030s. Currently, only 40% of Suriname’s offshore blocks have been licensed, leaving over 60% of the area, or around 32 million acres, available for future exploration. This untapped potential, highlighted by Staatsolie, presents significant opportunities for growth and investment.
Economic and Sustainable Development
Suriname is expected to earn a total of $7 billion in government revenues in the first five years of oil production starting in 2028. This includes income tax from companies like TotalEnergies and APA Corporation, contributions from Staatsolie, royalties, and profit oil. Annual earnings for the government are estimated to range from $150 million to $555 million, providing much-needed support for public services, infrastructure, and community development.
To ensure these economic benefits lead to a sustainable future, it is paramount to focus on environmental responsibility, economic diversification, education and training, and community engagement. Implementing strict environmental measures to minimize the impact of oil production on natural resources, investing in other sectors to avoid over-reliance on oil revenues, and providing education and training opportunities to equip the workforce with the skills needed for the evolving job market are essential steps. Engaging with local communities to ensure they benefit from development through job creation and improved infrastructure is also crucial.
Major Discoveries and Future Plans
The Roystonea and Fusaea oil discoveries in Block 58 could significantly boost Suriname’s economic and energy landscape. This development underscores the potential for substantial growth in Suriname’s energy sector, leveraging advanced exploration and production technologies. TotalEnergies, alongside APA Corporation, aims to make the final investment decision (FID) for the Suriname Block 58 project by the end of 2024, with first oil production targeted for 2028. SBM Offshore has been pre-selected as the preferred bidder for the FPSO vessel contract for Block 58, offshore Suriname. This $9 billion project, featuring the Sapakara South and Krabdagu oil discoveries, is set to produce around 200,000 barrels of oil per day.
For more dynamic map information on the oil blocks, check out the ArcGIS Dashboard or go to: https://gissat.maps.arcgis.com/apps/dashboards/01bdba8b1bdb4136aabf89b6796772d2
Ensuring Sustainable Success in Suriname’s Oil Industry
As Suriname embarks on this transformative journey in the oil industry, it is paramount to focus on sustainable measures to ensure long-term benefits for the nation. This exciting development brings immense potential, but it must be managed responsibly to achieve a lasting positive impact.
Conclusion
Suriname’s burgeoning oil and gas sector presents a wealth of opportunities for economic growth and development. With careful management and a focus on sustainability, Suriname can leverage its natural resources to create a prosperous future for its citizens. The strategic developments in offshore oil blocks, combined with responsible environmental practices and community engagement, will play a crucial role in shaping the nation’s success in the energy sector.
Sources
- Wood Mackenzie
- Staatsolie
- ExxonMobil
- TotalEnergies
- APA Corporation
- Petronas
- Hess Corporation
- EMFI Analytics
- Offshore Technology
- World Oil
- The Energy Year