Suriname has ‘proud track record’ honouring contracts – oil Minister

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Minister of Natural Resources for Suriname, David Abiamofo, said the nation is extremely proud of its track record in honouring contracts, including production sharing contracts.

He made the comment during an interview with energy analyst from Americas Market Intelligence Arthur Deakin.

Deakin questioned whether Abiamofo expects Suriname to bow to pressure to renegotiate existing contracts, as it increases its resource estimate.

“Based on our track record and being part of this Government, I do not expect that this will happen in Suriname,” the Minister said.

Suriname’s authorities are of the view that its model contract is very competitive. Asked by OilNOW whether Suriname is looking to revise its fiscal framework, Staatsolie’s chief executive officer, Annand Jagesar said “We think, the Suriname PSCs are some of the most competitive and flexible industry-wide.”

Chief Executive Officer of Staatsolie, Annand Jagesar

The CEO said Suriname’s objective is to offer a fiscal and regulatory regime that encourages investment and activity in the offshore, and that Suriname has managed to attract a large number of international oil companies such as Shell, Chevron, ExxonMobil and TotalEnergies.

“We think that the industry knowledge and the good rapport with the Government of Staatsolie makes them a preferred partner as well,” Jagesar said.

Suriname is in the midst of an Energy, Oil & Gas summit during which President Chandrikapersad Santokhi invited investors to take part in the country’s development.

Over in Trinidad and Tobago, industry has called on the government to offer more attractive terms. To this end, Prime Minister Dr. Keith Rowley said during the Trinidad and Tobago Energy Conference that the country will revise its onshore and deepwater terms to court more investors. The need for this became more pronounced after the country’s deepwater bid round closed during the conference with disappointing results. Out of 17 blocks on offer, only four received bids.

In Guyana, some civil society representatives have complained for years that the Stabroek Block production sharing agreement (PSA) is deficient. While the current administration agrees with this, it also recognises the importance of contract sanctity and has committed to preserving the agreement. The government said that its new model production sharing agreement (PSA) will secure a higher government take.

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