Staatsolie, Suriname’s state oil firm, has announced plans to issue bonds in 2025 as part of its strategy to finance participation in the first offshore oil production field in Block 58. The company is entitled to a maximum 20% stake in the project under the production sharing contract.
The final investment decision (FID) for the development will be made by partners TotalEnergies and APA Corporation in the fourth quarter of 2024, Staatsolie said.
Staatsolie estimates that full participation would require over US$1.8 billion. “We are considering various options to finance our participation, from our own cash reserves, bonds, bank loans, partnerships with strategic and/or non-strategic partners, to other forms of financing or a combination of these options,” the company stated.
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The planned bond issuance, set to launch in January 2025 and close in March, aims to secure investment capital. Staatsolie intends to make participation simple and accessible, with bonds available in small denominations, similar to previous successful bond issues. “The Surinamese society, including the current bondholders, will be able to participate again,” the company emphasized. De Surinaamsche Bank (DSB) will act as the bond issue arranger.
Staatsolie’s existing bonds, issued in 2020, are set to expire in September 2025 and March 2027, with interest rates of 7% and 7.5% respectively.
TotalEnergies and APA Corporation are leading a US$9 billion development targeting the Sapakara South and Krabdagu fields in Block 58, estimated to hold around 700 million barrels of oil. The project will involve drilling around 30 wells over 2.5 years, with first oil expected in 2028.
