Suriname’s Oil Boom: Staatsolie Sets Course for 2024 Milestones

It is almost certain that the final investment decision to bring the oil reserves in Block 58 off the Surinamese coast into production will be made in the third quarter of 2024. The announcement of the draft of the expected development by Patrick Pouyanné, CEO of TotalEnergies, in September at Royal Torarica, is seen by Staatsolie Director Annand Jagesar as the “absolute highlight” of 2023. Currently, intensive work is being done to design the production and storage ship, install pipelines on the seabed, and create the necessary wells, all of which are on schedule.

Other highlights include achieving the production target for crude oil in Saramacca, power generation at Afobakka and Tout Lui Faut, and the production of end products in the refinery. Based on the results, future developments can be undertaken.

“We continue to do our best.”

Jagesar is also pleased that the company was able to renovate a number of homes for 1.8 million US dollars in 2023. “It hurts when you go there and see the deplorable condition of the institutions.”

The Staatsolie CEO states that a teacher who had a reasonable living twenty years ago with their salary has almost been reduced to begging due to the devaluation of the Surinamese currency. “We all need to take responsibility for that.”

Bids

A notable development this year, according to Jagesar, is the discussions with Malaysian Petronas. This company is “enthusiastic” to continue exploration activities, indicating that Suriname is facing a potential second oil/gas development in the sea area.

Discussions have taken place with the company to bring the gas discoveries into production. Petronas will conduct at least three more exploration and appraisal drills. The director sees Petronas taking over all drilling activities in Suriname as a positive development, allowing local companies to benefit.

Staatsolie has also held three successful bids this year for the shallow-sea area. Blocks 8 and 6 have been awarded to TotalEnergies and Qatar Energy. In the Demerara bidding round, Blocks 63, 64, and 65 have been assigned to Petronas, Qatar Energy, BG, and TotalEnergies.

Continuing and doing our best

Staatsolie aims to implement its solar energy program next year, generating thirty megawatts of power at a lower cost than the company’s other generation facilities. “We are continuing with it,” says Jagesar.

The director also considers the second bidding round in the shallow-sea area next year as a significant development. This round began on December 7 and will conclude in May 2024. According to Jagesar, major international oil companies have applied for blocks in the Surinamese offshore area because Staatsolie, with its years of experience and pre-studies, is capable of offering comprehensive data packages. “We continue to do our best,” says the director.

Date: 7 January 2024

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Tags:  Annand Jagesar, Bidding Rounds, Block 58, Deep-water Offshore Drilling, Energy, Offshore, Offshore Blocks, Offshore Suriname, Patrick Pouyanné, Petronas, Shallow Offshore, Staatsolie Maatschappij Suriname NV, TotalEnergies