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The
first oil is expected by mid-2028, with an anticipated
production of 220,000 barrels per day, according to
TotalEnergies CEO Patrick Pouyanné, who flew to Suriname to
personally announce the investment, the country’s largest to
date.
The so-called GranMorgu project focuses on an offshore area
believed to contain some 700 million barrels of oil. It is
adjacent to a successful ExxonMobil project in waters belonging
to neighboring Guyana.
“Today is a historic day for Suriname,” said a jubilant
President Chan Santokhi, calling it “a day that will determine
our future.”
TotalEnergies will partner with APA Corp, a holding company for
Apache Corporation, a Texas-based hydrocarbon exploration
business, and Staatsolie, the local national oil producer
representing the Surinamese government.
Staatsolie plans to issue bonds in 2025 to finance its
participation, since it is entitled to a 20% stake under the
production sharing contract. The company secured an initial $175
million payment and is now in talks with banks and planning a
bond offer to complete a second payment, Jagesar said.
Santokhi said the anticipated revenue from the project would be
used to raise the standard of living in Suriname, a country of
more than 640,000 people with a poverty rate of 18%, according
to the Inter-American Development Bank.
“This is a game-changer,” he said.
Suriname holds $3.5 billion in debt and is undergoing a
three-year, $688 IMF restructuring program that led to austerity
measures and sparked violent protests last year.
Annand Jagesar, CEO of Staatsolie, said that the oil exploration
deal means that “Suriname will never be the same."
But he warned of potential poor governance, noting how Venezuela
had plenty of reserves but still struggled economically since it
did not develop other resources and was oil dependent.
TotalEnergies has pledged to develop its project responsibly,
utilizing advanced technologies to minimize greenhouse gas
emissions.
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