A final investment decision at Block 58 offshore Suriname could come in 2023, rather than later this year as was previously anticipated.
Another drillship will move to the Sapakara field to drill a second appraisal well at Sapakara South, where APA and TotalEnergies have already conducted a successful flow test.
RBC Capital Markets analyst, Scott Hanold, said the partners moving to FID in 2023 rather than this year is the likely scenario since the Sapakara appraisal results may not be known until later in the year.
“We think this keeps APA and its partners progressing toward FID, but that could be a 2023 event,” Hanold said in a August 23 investor note.
Government officials had expressed hope during the Suriname Energy, Oil and Gas Conference (SEOGS) in June, that FID could be made by the end of this year, delivering the country’s first offshore oil production project.
But TotalEnergies’ Managing Director, Philippe Blanchard, when asked at the time to give a more precise date, told OilNOW that the company is awaiting the results of the other wells.
“We do not know what the future would be. We are in [the] exploration and appraisal [phase] with some risky wells. So, we are waiting,” Blanchard said.
He pointed out that in the past, there have been disappointing results on the block, “So, it would be very difficult to say now” when FID will take place.
Just this month, the partners hit a duster on the block at the Dikkop exploration well, while delivering their first discovery at the Baja-1 prospect in Block 53.
Total and APA announced their first discovery at Maka Central-1 back in January 2020 and have gone on to make other discoveries on the block since then at Sapakara West-1, Kwaskwasi-1, Keskesi East-1 and Krabdagu-1.
TotalEnergies is the operator of Block 58, with a 50% working interest, while APA Corporation holds the remaining 50%.