Suriname’s state oil company Staatsolie is set to plug US$1.8 billion in the nation’s first offshore oil project, according to the company’s 2023 annual report.
Staatsolie could participate with up to 20% stake in the Block 58 field development. Its Managing Director, Annand Jagesar, told OilNOW that it intends to exercise this option.
“We fully intend to exercise our option for up to 20% participation in this landmark project, which with the current investment will entail an investment of approximately US$1.8 billion,” the report outlined.
Staatsolie said it is considering all options to finance its participation, from its own cash reserves, bonds, loans, partnerships with strategic and/or nonstrategic partners to other forms of financing or a combination of options.
Staatsolie ready to support oil fund for Suriname as Block 58 development plans underway | OilNOW
Staatsolie estimates it will receive substantial government revenues from the Block 58 development. This amount, including royalties, profit oil, and taxes, will fall between US$16 billion and US$26 billion over the anticipated two-decade lifespan of the production field, subject to current oil prices.
TotalEnergies and APA Corporation are spearheading a US$9 billion development targeting two vast reservoirs, the Sapakara South and Krabdagu fields, estimated to hold around 700 million barrels of oil combined. The Sapakara South and Krabdagu reservoirs are situated at water depths ranging from 100 to 1,000 meters.
Staatsolie said the development of the first offshore production field will see the drilling of around 30 wells over 2.5 years. The development proposal is being crafted, with a review expected in 2024, and first oil in 2028.
