Suriname’s offshore oil exploration is experiencing a surge in interest, with significant developments expected in the coming years. While neighboring Guyana has already discovered over 13 billion barrels of oil in the past decade, Suriname is now drawing attention as its energy sector expands. According to Rystad Energy, at least 10 wells are forecasted to be drilled offshore Suriname within the next two years, boosting investment and production in the country.
Investment in Suriname’s oil and gas industry has been steadily increasing, with upstream spending rising from $348 million in 2020 to $514 million in 2021. Rystad Energy predicts capital investments in Suriname’s upstream sector will reach $9.5 billion between 2023 and 2027, driven by projects like the TotalEnergies-operated GranMorgu development and planned exploration initiatives. One key project is the Araku Deep-1 well, Shell’s first of four wells set to begin drilling this year. A discovery at this well could make future exploration efforts more promising and attract additional foreign investment. Suriname’s national oil company, Staatsolie, holds a 20% stake in this important project.
Major energy companies, including Shell, TotalEnergies, and Chevron, are leading the way in Suriname’s oil exploration, aiming to increase the country’s resources, which are currently estimated at 2.2 billion barrels of oil equivalent (boe). This places Suriname among the top emerging oil exploration areas globally, second only to Namibia. Suriname’s geological similarities to Guyana are also expected to play a crucial role in attracting further exploration, as major operators look for opportunities in regions with proven success.
While Guyana has traditionally been the focus of exploration in the region, Suriname is rapidly gaining attention, especially in Block 58. Its favorable petroleum systems, exploration success, and active efforts to attract foreign investment make Suriname an appealing target for exploration. Despite the high-risk and relatively unexplored environment, Suriname’s offshore assets are expected to generate strong cash flows.
One of the key projects fueling Suriname’s offshore growth is the GranMorgu development, which includes the Sapakara South and Krabdagu fields. This project, set to begin production in 2028, is estimated to recover around 700 million boe. It will be Suriname’s first deepwater offshore oil production, utilizing a floating production, storage, and offloading (FPSO) unit capable of producing up to 220,000 barrels per day. The project will also include storage for 2 million barrels of crude and gas treatment capacity of 500 million cubic feet per day. Designed with an all-electric platform, GranMorgu will focus on minimizing emissions, with zero routine flaring and full reinjection of associated gas into the reservoirs.
The Guyana-Suriname Basin has also seen a significant reduction in timelines for offshore projects. For instance, the Liza-1 well in Guyana, discovered in the Stabroek Block, was fast-tracked to production in just four years. Other projects in the basin are also expected to take around six years from discovery to production, demonstrating a remarkable acceleration in the development of deepwater reserves.
Petronas, the Malaysian state oil company, is also active in Suriname, conducting a 3D seismic survey in Blocks 63 and 52. The survey, covering 6,042 square kilometers, aims to identify the Ironman prospect ahead of exploration drilling. Petronas is also focusing on its discoveries in Block 52, where recoverable resources are estimated at over 500 million boe. With the exit of ExxonMobil from its 50% stake in the block last year, Petronas may continue independently or seek new partners to further develop these resources.
In conclusion, Suriname’s offshore oil sector is poised for significant growth, with major international players investing heavily in exploration and development. The country’s strategic geological position, favorable conditions for foreign investment, and upcoming projects are set to unlock substantial resources in the coming years.
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