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Suriname will never be the same with Oil Revenues

Staatsolie’s Annand Jagesar Discusses Suriname’s Economic Shift Amidst Projected $26 Billion Oil Revenues

Suriname will never be the same with Oil Revenues

According to Annand Jagesar, the director of Staatsolie, Suriname is set to undergo profound changes due to the anticipated oil revenues in the coming years. Jagesar emphasized in the Magazine-4 program that these revenues would structurally alter the country, provided that the funds are used wisely. He stressed the importance of avoiding the pitfalls seen in other nations that mismanaged their oil earnings.

The estimated income over the next 20 years is around US$26 billion. “Even the most challenging policymaker will need to be an artist to exhaust this money. This is a game-changer for Suriname. We should never be poor with this money,” stated Jagesar.

Seven discoveries have been made off the Surinamese coast, including three gas discoveries. Two of these are set for production, while the remaining two will be explored in the upcoming period. In October, it will be determined if the other two contain commercially viable oil, with Petronas conducting the drilling.

Jagesar also discussed gas extraction, acknowledging current debates about its feasibility. He highlighted a collaboration between Phoenix Development Company and N.V. Havenbeheer for the construction of The Port of Nickerie, a deep-sea port with an investment of over US$5.4 billion. Anticipating gas exploitation, the port is expected to support an offshore Liquefied Natural Gas (LNG) facility.

Addressing concerns, Jagesar raised three crucial questions. Firstly, he questioned the source of the gas the port plans to export to Europe from 2025, stating that it won’t come from TotalEnergies, which begins production in 2028. Secondly, he expressed doubts about selling gas that doesn’t exist, urging transparency from Phoenix Development Company. Lastly, he noted the absence of a comprehensive study, criticizing the presentation as only a ’teaser.’

Jagesar speculated that collaborative efforts between Suriname and Guyana could yield sufficient reserves for a gas project, but he foresaw this happening only in the long term, possibly after 2030.

Highlighting reasons for the delay in the Final Investment Decision (FiD), Jagesar mentioned Suriname’s initial lack of proven reserves compared to Guyana. Suriname’s oil discoveries, including the KesKesi well, resulted in a shift in the FiD timeline.

With Suriname now having established adequate reserves, Total CEO Patrick Pouyanne announced a project with a USD 9 billion investment, set to commence in the second half of 2028.

Jagesar affirmed that Suriname secured favorable contracts with oil companies, regularly comparing them with global standards. Suriname earns over 60%-70% of net income, with Staatsolie holding a 20% stake in the oil project. Despite the substantial US$1.8 billion investment, Staatsolie sees this as a strategic move with various funding options available.

Source: https://surinamenieuwscentrale.com/suriname-zal-nooit-meer-hetzelfde-met-olie-inkomsten

Date: 15 september 2023

Categories:  Video 

Tags:  Annand Jagesar, Europe, Gas Exploitation, Gas Reserves, Oil Drilling, Oil Exploration, Oil Production, Oil Revenues, Patrick Pouyanné, Petronas, Staatsolie Maatschappij Suriname NV, TotalEnergies 

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