Suriname secures three times Guyana’s royalty for latest oil find

Jan 16, 2020 News

– Companies to pay 36% tax on income

After drilling six dry holes in December last, the Government of Suriname was completely thrilled after it learnt that oil operators, Total and Apache, made a material oil discovery on Block 58. That concession is located within its territorial waters. The find which was made a few days ago is on trend with the prolific discoveries made in the adjacent Stabroek Block in Guyana.

Map showing the location of the latest Suriname discovery (marked by a star) and its proximity to other oil finds offshore Guyana

According to Total and Apache, the Maka Central-1 well was drilled by a water depth of about 1,000 metres and encountered more than 123 metres net pay of high-quality light oil and gas rich condensate net pay, in multiple stacked reservoirs. Further drilling and testing will be carried out to appraise the resources and productivity of the reservoir.
While that is being done, Staatsolie, the Dutch state’s oil company, has disclosed that contractual provisions allow it to participate as an investor up to a maximum of 20% in the development of a well, while noting that the State earns 6.25% in royalties. This is more than three times what Guyana was able to negotiate for its globally praised, light sweet crude in the Stabroek Block.
Further to this, Kaieteur News understands that the companies will pay 36% tax on income to the Surinamese administration. In the case of Guyana, ExxonMobil, Hess Corporation and CNOOC/NEXEN can breathe easy as the coalition government has generously opted to pay the taxes of the companies out of its share of profit oil.