Saipem, the Italian engineering group, has secured a $1.9 billion contract with TotalEnergies for the GranMorgu oil project off the coast of Suriname. The deal covers engineering, procurement, construction, and installation (EPCI) services for the project, which is valued at $10.5 billion.
Under the contract, Saipem will be responsible for a range of tasks, including engineering, procurement, supply, construction, installation, pre-commissioning, and support for commissioning and startup. The company will specifically handle the Subsea Umbilicals, Risers, and Flowlines (SURF) package for the project.
In October, TotalEnergies made the final investment decision to move forward with the GranMorgu development. The project is expected to tap into fields off Suriname’s coast, estimated to contain more than 750 million barrels of recoverable reserves.
The total investment in GranMorgu is projected at $10.5 billion, with the first oil expected to flow in 2028. The project will feature a Floating Production Storage and Offloading (FPSO) unit with a capacity of 220,000 barrels of oil per day. The FPSO is also designed to accommodate future expansions, allowing for additional production as new tie-back opportunities arise.
GranMorgu will be Suriname’s first major subsea development. It aims to boost production from the central area of the block by using subsea wells connected to the FPSO.
Exploration in the Atlantic Basin has gained momentum, especially following significant offshore oil developments in neighboring Guyana, led by ExxonMobil. TotalEnergies is also looking to explore Suriname’s untapped resources, sparking hopes that Suriname could mirror Guyana’s oil boom.
Suriname has already made several significant crude oil discoveries, which analysts estimate have unlocked access to 2.4 billion barrels of reserves. Additionally, the country is believed to hold around 12.5 trillion cubic feet of natural gas reserves. Over the past six years, there have been nine offshore discoveries in Suriname.
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