Reservoirs identified for Guyana, Suriname joint development

Oct 24, 2024 News

Kaieteur News – Guyana and Suriname, are discussing joint development of natural gas resources off the coasts of the neighbouring South American countries, according to Annand Jagesar, CEO of Suriname’s state firm Staatsolie.

Reservoirs identified for Guyana, Suriname joint development

Annand Jagesar, CEO of Suriname’s state firm Staatsolie.

“It will not happen tomorrow, but it is important that we now have mutual confirmation that we want to work together. It may take years before we find a development concept,” Jagesar told Suriname-based outlet de Ware Tijd.

According to a report by OilPrice.com, Jagesar said Guyana and Suriname will cooperate in drafting a development concept for some offshore reservoirs. These he said could include the Makka and Kwaskwasi discoveries in Suriname, close to the border with Guyana, and the Haimara and Pluma discoveries in Guyana, which are also close to the border with Suriname.

Guyana and Suriname have been the focus of oil and gas exploration in recent years, with billions of barrels of oil found in their offshore sediment basin. Last week Vice President, Bharrat Jagdeo told a news conference that the two countries have committed to sharing information on the oil and gas sector with each other. He said that the commitment between the two countries was made during a recent visit by Suriname’s Foreign Minister Albert Ramdin, other government officials and representatives of Staatsolie – Suriname’s oil company.

Additionally, the two countries are working to set up a committee to specifically handle information sharing but, in the meantime, it will be handled by the Suriname’s Ministry of Foreign Affairs and Guyana’s Ministry of Natural Resources. “Earlier this week, I also met with Minister Ramdin from Suriname… the Foreign Minister, and he brought a number of people from Staatsolie and from the government who deals with this sector. So, we talked extensively about the coordination of our efforts, collaboration in the sector and we committed to sharing more information on the Oil and Gas industry among ourselves,” Jagdeo had stated.

When he was asked about the possibility of collaboration for gas monetization between the two countries and whether the subject was discussed at the said meeting, the Vice President said, “No it did not as yet. It was a general conversation to discuss the sharing of information and where both countries are in their oil and gas sector.” He explained that as Suriname’s oil sector progresses, talks will continue on areas of collaboration.

ExxonMobil has discovered more than 11 billion barrels of oil in place offshore Guyana and is prioritizing the country as a key growth driver of its asset and production base. Exxon and its partners in the Stabroek block offshore Guyana, U.S. Hess Corporation and CNOOC of China, currently produce all the oil in the South American country, which became the newest oil-exporting nation at the end of 2019.

Exxon is currently producing a total of 665,000 barrels of oil per day in Guyana but over the longer term eyes production of over 1 million bpd. Total oil production in the country is seen rising to over 1.6 million bpd by 2030, as the government seeks to maximize returns from the industry before the predicted demand growth peak. In Suriname, French supermajor TotalEnegies has just announced its final investment decision (FID) for the GranMorgu project on offshore Block 58, which will develop the Sapakara and Krabdagu oil discoveries. The project, expected to pump 220,000 bpd at peak production, will cost around $10.5 billion, with first oil expected in 2028.

(Reservoirs identified for Guyana, Suriname joint development)

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Bharrat Jagdeo, Countries, Ministry of Foreign Affairs, President, South American, Suriname

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