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Suriname expects Final Investment Decision for Block 52 next year – Staatsolie Head
Kaieteur News- Suriname is expecting a Final Investment Decision (FID) for Block 52 by 2026, Managing Director of Staatsolie (Suriname’s oil company) Annand Jagesar disclosed at the recently concluded Guyana Energy Conference and Supply Chain Expo.
Managing Director of Surinamese oil company Staatsolie Annand Jagesar (Suriname expects Final Investment…)
Jagesar told attendees that he does not think Suriname’s reservoir is as clean as Guyana’s so the process will take longer given that Suriname has to combine two different receptors to obtain desired results.
“So, it’s a nice project. It’s also the fast-track approach with the same contractor (PETRONAS). We have already progressed 10% in the project, locked in like, I think, almost US$7B. So that risk is also mitigated, and soon we’ll be locking in a final big contract, and then it will be around US$10B, which will take all the risk of the project. So yeah, right on your tail, sir,” he said.
The Staatsolie official noted too that Suriname’s gas production would not be able to surpass Guyana’s but will be following close behind.
In Block 52 gas was discovered, appraised and tested. “The flow tested well, and it was about expectation, which is non-associated gas, and if everything goes well, we will have FID there in 2026,” he told the conference.
Discussions with PETRONAS and the Surinamese government are ongoing and according to Jagesar “we are very open” on the way forward. The contractor has a 10-year tax holiday.
“So otherwise, you can calculate for the government that you have a lot of money, but if it doesn’t work for the contractor, you don’t have a project. So that’s a fantasy number that the government would get,” Jagesar said.
He further explained that Staatsolie and PETRONAS are working to bring this new project to fruition, and the company is very happy to have the contractor on board, since PETRONAS is seen as a world champion in the depletion of small gas reservoirs, having done so in other countries such as Malaysia and Indonesia.
“So that’s very exciting. They also discovered oil. It’s a little bit gassy, so they have to explore some more to get to the volumes, and they have planned to drill two wells in the middle of this year,” he added.
On October 6, 2024 Kaieteur News reported that Suriname’s oil and gas industry hit an historic milestone with the Final Investment Decision (FID) made to develop the Gran Morgu field in Block 58.
Surinamese President Chandrikapersad Santokhi said, “Suriname and its people welcome and appreciate the final investment decision of Total Energies and APA Corporation regarding Block 58 with Staatsolie. We consider this a historic and milestone occasion, creating significant opportunities and revenue prospects for Suriname, as well as attracting investors worldwide.”
He noted that the decision will boost the country’s domestic capabilities and investments and have a major impact on local content opportunities.
President Santokhi underscored the country’s commitment to a strong and loyal partnership. Notably, he said too that Suriname expects that the offshore oil and gas development will take off in compliance with environmental regulations and standards.
At that time, Jagesar said, “What seemed like a distant dream is becoming reality. This will be the largest investment ever in our country; one in which Suriname will receive the largest share of the ‘take’.” He noted that Staatsolie will supervise this.
He added, “This new opportunity comes with a shared obligation to ensure that Suriname will benefit optimally from the incomes from offshore oil. These will have to be put in use for the long-term prosperity of all Surinamese.”
He underscored that this can be achieved through good governance, transparency, zero corruption and the establishment and strengthening of institutions that guarantee that the income benefits the development of the entire Surinamese society.
(Suriname expects Final Investment Decision for Block 52 next year – Staatsolie Head)
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