Offshore oil production in Suriname starting in 2028
Suriname’s Oil Boom: TotalEnergies Plans $9 Billion Investment and 200,000 Barrels per Day Production by 2028
TotalEnergies plans to commence processing the 700 million barrels of oil discovered off the coast starting in 2028. The oil giant will produce 200,000 barrels per day. TotalEnergies CEO Patrick Pouyanné announced this on Wednesday at the Royal Ballroom of Torarica. Annand Jagesar, CEO of Staatsolie, reveals that Suriname will earn between 16 and US$ 26 billion. Remaining in poverty will be impossible due to this development, he asserts.
Pouyanné and Jagesar explained the status of the offshore oil fields at a press conference. They indicated that at two locations where wells have been drilled, Krabdagu and Sapakara South, 700 million barrels of oil have been discovered. Sufficient for generating profits.
What makes this significant is that it will cost US$ 20 per barrel to produce oil from these areas. In the rest of the world, it costs between US$ 50 and US$ 60 to produce 1 barrel of crude oil. It is noted that compared to Guyana, the production costs will be much lower, while the area will yield more oil per day. 200,000 barrels per day compared to 120,000 per day in Guyana.
TotalEnergies has initiated the preliminary studies for the project, Pouyanné states. The results will be available by the end of the year. At the end of 2024, he will return to Suriname to give the green light to the project. It will take a few more years before everything is in place. “Production must commence in 2028,” Pouyanné shares. He indicates that over US$ 9 billion will be invested in the project.
“We have reached a historic moment,” Jagesar observes. “We can earn between 16 and US$ 26 billion from this development. This means that with sound policies, there can be no more poverty in Suriname. Absolutely no more poverty.” He emphasizes the need to prevent the country from ending up like Venezuela and Nigeria, which have massive oil reserves but have become impoverished. Sound policies must be established.
Jagesar mentions that between now and 2028, there will be more economic activities. Those who wish to build restaurants or hotels can start now. It is the right time to invest. He adds, “And hopefully, the IMF will consider this in the economic framework. Because if those oil revenues are taken in, the measures for Suriname no longer need to be so stringent. But the government must discuss this with the IMF.”
Date: 14 september 2023
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