Suriname is already an oil-producing country, with Staatsolie, its national oil company, operating onshore fields since the 1980s. However, the October 2024 Final Investment Decision (FID) by TotalEnergies and APA Corporation marked a pivotal moment: the shift toward offshore deepwater production.
This transition opens a new chapter in the country’s energy industry, one that could significantly reshape its economy over the next decade.
The FID covers the development of the Sapakara South and Krabdagu fields in Block 58, roughly 180 kilometers offshore. The $10.5 billion GranMorgu project will use a floating production, storage and offloading vessel (FPSO) capable of producing up to 220,000 barrels of oil per day. According to current timelines, first oil is expected in mid-2028. In global offshore development terms, this is a standard buildout window between FID and production.
Staatsolie has opted to exercise its right to a 20% stake in the offshore development. To finance this stake, Staatsolie secured a US$1.6 billion long-term senior secured financing facility, arranged by Banco Latinoamericano de Comercio Exterior, S.A. (Bladex) and the African Export-Import Bank (Afreximbank), in collaboration with 16 other international financial institutions.
This funding structure is designed to support Staatsolie’s offshore ambitions without compromising its existing operations. By 2029, Staatsolie expects its annual revenues to more than triple, with offshore oil becoming the company’s primary income source.
While the commercial commitment has been made, execution is complex. Engineering and procurement activities are underway. As of now, the construction of the topsides module of the FPSO has started in China.
Subsea infrastructure will be installed across water depths ranging from 100 to 1,100 meters. These tasks involve tight timelines, global supply chains and specialized technical resources. The supporting infrastructure onshore remains a work in progress. While the exploration phase used existing port capacity in Paramaribo and Nickerie, the demands of full-scale offshore production are far greater. Dedicated logistics bases, transport upgrades and safety and environmental oversight systems will be required. Several private and public-sector initiatives are underway but timelines are tight.
Capacity building is also underway. Staatsolie and its partners have increased investment in local training programs, internships and contractor development in anticipation of offshore operations ramping up.
Suriname’s first offshore production is no longer a distant prospect. The FID has been signed, engineering is progressing and first oil is expected in mid-2028.
The offshore era has begun, bringing both opportunity and responsibility. Careful execution over the coming years will determine how deeply the benefits extend into the wider economy.
