PARAMARIBO – SURINAME: Suriname’s petroleum industry is governed by the Petroleum Law of 1990, enacted in 1991 (S.B. 1991 no. 7) and amended in 2001. This framework has shaped how oil and gas resources are managed, licensed and developed for over three decades.
The law begins with a clear principle: all petroleum resources belong to the State (Article 2). This principle stems from the Mining Decree of 1986 (Article 2), which declares that all minerals, including hydrocarbons beneath the land, seabed, and subsoil, are state property. By anchoring ownership in statute, Suriname ensures that oil and gas cannot be privately owned at the source. Rights to explore and produce are granted only through the State, represented by Staatsolie, the national oil company created in December 1980, with the Staatsolie Hydrocarbon Institute (SHI) handling regulation and contracts.
Staatsolie is authorized to grant exploration and production rights and to negotiate contracts with international oil companies (Article 3). While the law itself does not specify the contractual model, Staatsolie uses Production Sharing Contracts (PSCs) as the standard form of agreement. Under these contracts, contractors finance exploration at their own risk, recover costs from a portion of production known as cost oil, and share the remainder, the profit oil, with the State. Staatsolie’s role as a partner is key: in 2025, the company raised financing to secure a 20% in the GranMorgu project in Block 58, showing how the legal framework translates into real participation, although the detailed terms of the Block 58 PSC have not been publicly disclosed.
For comparison, Guyana’s Stabroek Block Production Sharing Agreement is publicly available, allowing producers to recover up to 75% of production as cost oil. The remaining 25% of the profit oil is split equally between the government and the ExxonMobil-led consortium, with each receiving 12.5%. On top of that, Guyana collects a 2% royalty on gross production, bringing its total share to 14.5% of all production.
The Petroleum Law does not itself set durations for exploration or production rights. Instead, it defers to the Mining Decree of 1986 and empowers Staatsolie to vary those rules (Article 4). Under Article 27 of the Mining Decree, exploration rights can be granted for a period of up to 6 to 7 years. While the Decree doesn’t specify production durations, PSCs typically follow common practice by allowing for up to 30 years – but these are contractual, not statutory. This structure helps ensure resources aren’t tied up indefinitely and encourages timely development.
While the Petroleum Law does not itself set fiscal terms, Suriname’s broader tax and contract framework ensures that the State captures revenue from oil production. Corporations are subject to a fixed 36 percent income tax on profits under national tax law. In comparison, royalties are established in the Mining Decree at 6.25% of gross offshore production and remain in effect throughout the life of the contract. PSCs define the detailed fiscal mechanics. Under these contracts, contractors may first recover their expenses from a share of production, called cost oil, but only up to a ceiling established in the agreement. The remaining output, known as profit oil, is then divided between the company and the State. This system balances investor risk with state benefit, ensuring that revenues flow to Suriname even during high-cost development phases.
Environmental protection and safety are given legal weight. Operators must prevent pollution, restore sites and follow technical standards. The law also provides for dispute resolution through arbitration, offering international investors a recognized mechanism for settling disagreements.
The 2001 amendment to the law refined fiscal and contractual provisions, aligning Suriname more closely with international petroleum regimes and providing Staatsolie with greater flexibility. Despite these changes, the foundation of state ownership and state-led management remains firmly in place.
As Suriname prepares for its first offshore oil production, the Petroleum Law of 1990 remains the foundation. Yet new questions are emerging around local content, environmental safeguards and long-term fiscal stability. These will be addressed in the next parts of this series.
