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TotalEnergies is preparing to make a $10-billion-plus final investment decision for a massive oil and gas development project offshore Suriname, as the French giant eyes Exxon’s success in maritime neighbor Guyana, Reuters reported on Monday, exclusively, citing unnamed sources.
Earlier this month, TotalEnergies announced the launch of development studies for the project in Block 58, offshore Suriname, where the company is the operator with a 50% interest, alongside APA Corporation.
The appraisal of the Sapakara South and Krabdagu main oil discoveries in Block 58 was concluded in August 2023, when TotalEnergies tested three wells and confirmed “combined recoverable resources close to 700 million barrels for the two fields”.
“These reserves, located in water depths between 100 and 1,000 meters, will be produced through a system of subsea wells connected to a FPSO (Floating Production, Storage and Offloading unit) located 150 km off the Suriname coast, with an oil production capacity of 200,000 barrels per day,” TotalEnergies said in a September 13 press release, adding that the FDI was expected by the end of this year, with first production anticipated in 2028.
This would be Suriname’s first oil and gas development project, officially putting it on the map of offshore plays.
Reuters cited unnamed sources with knowledge of the project as confirming an FID on the ~$10-billion project is expected to be announced on Tuesday, though last week, the CEO of Suriname’s state-owned company told Reuters he expected the FID in the beginning of the New Year.
Last week, the head of Suriname’s state-run Staatsolie said it was “highly likely” that the company would manage to raise the funds necessary to acquire a 20% stake in the project, Reuters reported.
Suriname, which currently pumps ~16,000 barrels per day, is hoping its territorial waters possess the hydrocarbon resources to support an oil boom on the scale of that being enjoyed by Guyana. This would not only resolve Suriname’s economic crisis but also lift the tiny country of less than 700,000 out of poverty.
