Thursday, October 28, 2021

Suriname moving to develop “fit for purpose” shore base facility

Must Read

OilNOW
OilNOW is an online-based Information and Resource Centre

After decades of offshore exploration, Suriname has made significant hydrocarbon discoveries, particularly over the course of 2020 and 2021. These discoveries have intensified the exploration and appraisal efforts of various license holders and provides a positive outlook for future developments.

It is against these rapid discoveries that the South American country is seeking to test the appetite of companies in the international and domestic markets to develop shore base facilities.

Suriname had largest farm-out discovery in 2020, emerging plays carrying premium – Westwood

In an Expression of Interests (EOI) seen by OilNOW, the Government of Suriname (GoS) is looking for a “fit for purpose” shore base to match the development of its offshore oil and gas industry. The main objective is to provide the Suriname government with an option to endorse the best submissions.

Currently, most of the offshore support is provided from shore bases outside Suriname. Hence, the government of the Dutch-speaking nation has made it a priority to ensure shore base services from Suriname are in place to benefit the local economy in line with the offshore oil and gas developments.

“The GoS is fully aware that the existence of adequate and fully functional local shore base is crucial for the development of local content,” the EOI noted. To ensure this is achieved, a two-step process will be followed in the evaluation of the EOI. First, initial screening will be performed based on the criteria of the proposed business plan including a description of the proposed project. This stage should include, where necessary, phased development and future expansion options.

In addition to this, a description of provisional financial projections is required including initial capital investment, revenues, operating costs, source of funding, and capital structure (debt/equity). This would also include proof of financial means of the consortium or party, proof of access to funding for the project, proof of origin of funds for the project, proposed geographical location, and dimensions of the shore base, and proof of development and operational competency.

Respondents are expected to have in their consortia, a reputable shore base operator and a project developer which shall be demonstrated by a Memorandum of Understanding (MoU).

Furthermore, the shore base operator’s reputation is expected to be supported by a reference list and relevant certifications along with other key certificates and screening requirements.

The second step involves a further substantiation of items under step one. Where needed interested bidders are asked to submit their current level and future local content development plan that the proposed project will encompass.

Bidders are also asked to submit a high-level Project Development Plan with key milestones, including logistic solutions; proof of access to the land at the proposed location, including the land for any expansion options; and a preliminary scoping document for an Environmental, Social Impact Assessment (ESIA) outlining the key issues to be addressed during the whole life cycle of the project.

Guyana, Suriname discoveries span around 100 million years of deposition – Exxon Senior VP

While the GoS conveyed that it is aware of various shore base initiatives being undertaken by the Surinamese private sector, it desires to ensure that any shore base development will adhere to world-class safety and quality standards in providing “state-of-the-art” services to the offshore oil and gas industry operators and their prime contractors. The objective is for Surinamese Shore Bases to become the most evident choice in terms of safety and quality standards, range of services, and competitive advantages.

Furthermore, GoS said it recognizes that the extent of financing, development, and operational expertise may require bundling of parties in consortia of various forms.

Although the GoS has no specific preferences, EOIs are expected to be fully compliant in all areas. In the event that a sole respondent is not able to meet all requirements, the GoS encourages respondents to seek partnerships and confirm collaboration with other complementary parties.

The successful bidder or consortium will be selected by March 2022.

OilNOW TV

spot_img

Latest News

Hess says Yellowtail is one of the world’s best projects

When one considers the low breakeven cost of the Yellowtail project despite projected inflationary pressures, it still emerges as...

More Articles Like This

spot_img