Suriname President Chandrikapersad Santokhi promised prosperity for Surinamese, and a principle of leaving no one behind, as the final investment decision was made for the first-ever offshore oil development at Block 58.
“Our policy, and this should apply to any government, is that the living standards and well-being of our population must be significantly elevated. Not just survival, but the ability to lead a good life. We will ensure that this prosperity reaches every citizen through the principle of leaving no one behind. We will defend this strongly,” Santokhi said.
TotalEnergies and APA Corporation this morning signed their final investment decision (FID) for the Gran Morgu project.
A ceremony was held in Suriname, attended by President Santokhi; Chief Executive Officer of TotalEnergies, Patrick Pouyanné; Managing Director of Staatsolie, Annand Jagesar, and other esteemed stakeholders.
“The announcement of the final investment decision means that from today, there need be no uncertainty about the fact that we, with international partners, will commercially exploit oil and gas resources in Block 58. The required investments will begin, with goals in mind, and represent billions of U.S. dollars,” Santokhi said.
He said the majority of net income from the project will go to Suriname, consisting of royalties, profit oil and taxes.
Kailash Bisessar, Staatsolie’s Advisor,Corporate Communications said the field development plan (FDP) was approved by the government of Suriname yesterday (September 30).
The project is estimated to cost US$10.5 billion and is expected to hold approximately 750 million barrels of oil. The development will involve drilling around 30 wells over a few years, with first oil production expected in 2028. A floating production, storage and offloading (FPSO) vessel will be stationed offshore Suriname once constructed. The project aims to produce up to 220,000 barrels of oil per day (b/d).
Staatsolie has told OilNOW it will elect to assert its right to a 20% participation in the project. This decision means the state company will invest alongside TotalEnergies and APA Corporation, and it will need to secure approximately US$1.8 billion to fund its share. Staatsolie’s participation is expected to allow Suriname an opportunity to gain greater financial returns from the project.
Santokhi said the gains from the sector will benefit current and future generations. He stated, “While this moment is of historical significance for all of us, it must be emphasized that the government’s goal of diversifying our economy is not solely focused on oil and gas and related industries. We see the economy as a whole, and will therefore also take up the further development of the agricultural sector, fisheries, tourism, the service sector, etc.”
