TotalEnergies comes out swinging with US$9 billion investment proposal for first Suriname development

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Deepwater oil development offshore Suriname is finally coming.

TotalEnergies on Sept. 13 announced plans to plug US$9 billion in a Block 58 development to extract the massive oil finds hidden in the Sapakara South and Krabdagu fields – close to some 700 million barrels in total. The appraisals were successfully completed in August. That figure is significant for a first development. Oil investments in Guyana reached that level only until ExxonMobil’s third development – Payara. Its first project cost only US$3.6 billion. 

The Sapakara South and Krabdagu reservoirs lie in water depths of between 100 and 1,000 metres. A floating production, storage and offloading (FPSO) vessel with the capacity to produce 200,000 barrels per day (bpd) will be utilised, connected to subsea wells.  

Development studies have been launched for the project; Total stands as operator alongside APA Corporation. Both hold 50% interest. 

“The Block 58 development studies that we are launching today are a major step towards the development of the petroleum resources of Suriname. This development is in line with TotalEnergies’ strategy aiming at the development of low cost, low emissions oil resources, and leverages on our Company’s expertise in deep water projects. We will thus contribute to improving the well-being of the people of Suriname”, said Patrick Pouyanné, Chairman and Chief Executive Officer (CEO) of Total. 

Pouyanné met with Suriname’s President, Chandrikapersad Santokhi hours before the announcement was made. 

“Suriname is going through a challenging economic period. This announcement provides the much-needed outlook towards positive developments for our nation. We are confident that the Surinamese people will benefit from the economic spin-off that will be generated in the next phases. Local entrepreneurs will have to seize the opportunities to provide their services and goods. We will make sure that future income from the offshore oil and gas will be spent wisely. Those incomes will contribute to the prosperity and stability fund, and will be a means to diversify our economy by developing sustainable sectors such as agriculture and tourism,” he said. 

Annand Jagesar, CEO of Staatsolie – Suriname’s state oil company also commented on the announcement. He said that Staasolie was set-up to find, develop and produce oil offshore. 

“It took huge efforts, great patience and excellent partners to come to this long-awaited moment. We see the momentum, increased understanding of the basin, and diligent execution as key elements for further unlocking the Block 58 and Suriname basin potential in a responsible way,” he added.

According to Total, the detailed engineering studies (FEED) will start by end 2023 and the final investment decision (FID) is expected by the end of 2024 with a first production target in 2028.

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