Staatsolie could secure up to 20% stake in Suriname’s first oil development

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Staatsolie, the state-owned oil company of Suriname, could participate with up to 20% in the development of the inaugural field development within Block 58, the company announced. 

The arrangement aligns with the model production sharing contract, wherein the Surinamese state is entitled to the majority of net income derived from offshore activities. This revenue, according to Staatsolie, encompasses royalties, profit oil, and taxes and is projected to range between US$16 billion and US$26 billion over the expected two-decade lifespan of the production field, contingent on prevailing oil prices.

The development, pegged at US$9 billion is being led by TotalEnergies and APA Corporation. It aims to tap into two massive reservoirs Sapakara South and Krabdagu fields – close to some 700 million barrels in total.

Beyond the direct contributions stipulated in the contract, there are additional indirect revenues anticipated from the provision of local goods and services, commonly referred to as local content. 

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A testament to this is the recent drilling of the last five wells in Block 58, where all operational activities were carried out within Suriname. Staatsolie pointed out that approximately US$90 million has already streamed into the Surinamese economy, bolstered by the hiring of local labour, procurement of indigenous goods, and engagement of local services.

Looking ahead, Staatsolie said the development of the first offshore production field is set to entail 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.

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