Surinamese invest US$516M into country’s first oil project

Mar 25, 2025 News

---

Kaieteur News- The state-owned oil company of Suriname, Staatsolie on Monday announced that the company has raised US$515.8 million through a new bond that allowed citizens there to invest in the country’s first offshore oil project, GranMorgu.

Staatsolie in thanking participants highlighted that the amount raised was US$ 211.7 million more than the US$ 304.1 million that was targeted. “This proves that there is confidence in Staatsolie, the GranMorgu project in Block 58 and a brighter future for Suriname,” the company said.

Proceeds from the bond issue will be used by Staatsolie to co-fund its participation of up to 20% in the development of the GranMorgu offshore oil field in Block 58. The total investment for this project is estimated at US$ 12.2 billion, of which Staatsolie’s contribution is US$ 2.4 billion. Staatsolie has also set aside its own cash reserves for the investment in the GranMorgu project.

Additionally, it was explained that part of the proceeds will also be used to refinance the Staatsolie Bond 2020-2025 and 2020-2027 of US$195 million. “Holders of this bond had the opportunity of redeeming their bonds to participate in the new issue. More than seventy percent of the Staatsolie Bond 2020-2025 and 2020-2027 has been exchanged. Some of the bondholders, accounting for US$55 million, decided to continue with their existing bonds,” the company stated.

The official launch of the bond issuance took place on 31 January 2025.

The Staatsolie Bond 2025-2033, which was available in both US dollars and Euros, took effect on 23 March 2025, and has an eight-year term. The interest rate is set at 7.75% for the US$ bond and 7.25% for the EUR bond.

Local investors had an opportunity to participate from as little as US$100 or EUR 100. Staatsolie said for larger investors residing in Suriname, Curaçao, or Sint Maarten, a denomination of US$ 30,000 was available.

In its production-sharing contract with TotalEnergies, the operator of Block 58, it was agreed that Staatsolie will take up to a 20% stake in the first-ever offshore oil field in Suriname, the GranMorgu.

The Suriname oil company explained, “The proceeds from this bond issuance will help Staatsolie finance its portion, reducing the need for bank loans. The company has also set aside cash reserves for the GranMorgu investment. Another key objective of this bond issuance is to refinance the Staatsolie Bonds 2020-2025 and 2020-2027, which previously raised US$ 195 million to support the 2020-2027 investment programme.”

The GranMorgu project will develop the Sapakara and Krabdagu oil discoveries, on which a successful exploration and appraisal campaign was completed in 2023.

The fields are located 150 km off the coast of Suriname and hold recoverable reserves estimated at over 750 million barrels. First oil at the project is expected by 2028 TotalEnergies said in its Final Investment Decision (FID).

The project includes 220,000 barrels of oil per day Floating Production Storage and Offloading (FPSO) unit.

TotalEnergies is the operator of Block 58 with a 50% interest, alongside APA Corporation (50%).

Locally, the Chief Policymaker for the oil and gas sector, Vice President Bharrat Jagdeo lauded the approach by Suriname that allows its citizens to invest. During a press conference last month, Kaieteur News asked the VP whether this initiative could be introduced in Guyana.

To this end, he explained, “I think while it’s a laudable thing, they have to raise a lot of money, let’s see if it’s going to be subscribed to in Suriname but you also have to tell people about that risk, that when you put your money, an ordinary person, you’re dependent on what happens with the oil and gas sector in the future, you may not get back any return if the project doesn’t do well versus investing in a bond.”

Jagdeo also outlined how this initiative may be used in other projects in Guyana, particularly in sectors like fertilizer plants or offshore service vessels. According to him, “If we build a fertilizer plant in Guyana, maybe we could have people take equity in the project or invest through bonds. [Additionally], the vessels supplying offshore so if we structure some of those in a way that provides multiple opportunities for Guyanese. If you invest in a bond, you know the bond will state the rate you’ll get 10% for the year, you might get higher than the interest rate you are getting in the bank, but you know you getting that definitely because that is paid in the first order, it’s above the line, it’s part of the cost of the project.”

(Surinamese invest US$516M into country’s first oil project)

---

• bond, invest, oil, Staatsolie, Suriname

---