Suriname is positioning its offshore sector as a low-cost, low-carbon investment opportunity as it considers incentives to attract more oil and gas exploration capital, Minister of Oil, Gas and Environment Patrick Brunings said.
Brunings told Platts, part of S&P Global Commodity Insights, that Suriname has three factors it believes can help it compete for investment in Latin America. He pointed to low carbon production potential, lifting costs below US$20 per barrel, and the quality of the country’s oil and gas resources.
He spoke in Buenos Aires ahead of the Arpel energy conference, which runs from June 1-4.
“We will be able to produce with a very, very low carbon footprint,” Brunings said.
The minister said Suriname can achieve that because it is building its offshore industry with new infrastructure, new vessels, and modern technology. He said this is becoming more important as consumers pay closer attention to emissions linked to oil and gas production.
Brunings said Suriname’s lifting costs are below US$20 per barrel. He also said the country’s oil has almost no sulfur content, while its gas has low carbon dioxide content.
“These are three factors that give us all the confidence that we can stay competitive and we can be that place to continue to supply even under extreme conditions, to be able to continue to supply even at almost any price of oil,” Brunings said.
Brunings said Suriname is looking to increase offshore natural gas exploration. The government is considering incentives, including tax breaks, to encourage companies to take early exploration risks.
“That’s one of my goals, to have more activities in gas,” Brunings said. “We’re going to try and find ways to incentivize that.”
He said the incentives would be structured to give advantages to early movers.
“We will do it in such a way that, for instance, the first companies that are taking the risk, they get some more advantages,” Brunings said.
The government sees natural gas as both an export opportunity and a fuel for domestic use as Suriname moves toward cleaner energy. Brunings said the incentives could be announced “very soon,” though he did not give details.
Suriname’s offshore sector has so far been led by oil exploration and development. TotalEnergies, Chevron, Shell, Petronas, and PetroChina are among the companies operating in the country. Suriname’s undiscovered resources are estimated at 30 billion barrels of oil equivalent.
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The push for more investment comes as Suriname holds an open-door licensing round. The country is seeking new exploration bids in deepwater areas, where larger companies already active in the country are expected to be the focus. It is also targeting shallow-water acreage for smaller companies with lower budgets.
Suriname’s first major offshore oil development is GranMorgu, led by TotalEnergies. The project is expected to use subsea wells tied back to an all-electric drive floating production, storage and offloading vessel being delivered by SBM Offshore in partnership with Technip Energies.
The FPSO will have capacity to produce 220,000 barrels per day. First oil is expected in 2028. TotalEnergies holds a 40% interest in the project, APA Corporation holds 40%, and Staatsolie holds 20%.
