While Guyana has garnered significant attention for its booming oil and gas industry, its neighbor Suriname is quietly emerging as a key player in the energy sector. Several major oil companies have signed exploration agreements in Suriname, and experts predict the country could see significant oil and gas output as early as the 2030s. The growing fossil fuel developments in both Guyana and Suriname are expected to elevate the Caribbean region to a dominant position in global oil and gas production in the coming decades.
Though Suriname is South America’s smallest country in both size and population, it holds considerable potential to become a major energy powerhouse. Historically, the country’s oil production was limited to onshore fields operated by Staatsolie, the state-owned oil company, which produced around 17,000 barrels per day (bpd). However, offshore oil discoveries made in late 2019 and 2020 have spurred renewed interest from international energy companies.
In 2021, Suriname took its first steps toward expanding offshore exploration by licensing its offshore oil blocks. This led to production-sharing contracts (PSCs) with Chevron and QatarEnergy. By May 2023, Suriname finalized a major 30-year PSC between Staatsolie, TotalEnergies, and QatarEnergy for two neighboring offshore blocks, 6 and 8. Staatsolie holds a 40% share in these blocks via its subsidiary, Paradise Oil Company. The initial phase of exploration is expected to take six years.
The rush of international oil majors into Suriname is part of a broader trend, as companies seek new opportunities in emerging oil regions. Many of the world’s largest oilfields are nearing depletion, and existing operations are increasingly under pressure to reduce their carbon footprints. As a result, companies are looking to tap into untapped reserves in places like Africa and the Caribbean, where they can secure long-term crude production and develop lower-carbon operations.
In October 2023, France’s TotalEnergies committed $10.5 million to develop a major oil project in Block 58, located about 140 kilometers off Suriname’s coast. Construction and installation of the necessary infrastructure is expected to take four years, with the oilfield potentially coming online by 2028. Suriname’s Gran Morgu field, part of Block 58, is estimated to hold 700 million barrels of oil equivalent, making it a significant addition to the country’s oil reserves. This field is located next to ExxonMobil’s massive 11-billion-barrel discovery in neighboring Guyana. TotalEnergies plans to implement cutting-edge technologies to decarbonize its operations, including using an all-electric floating production, storage, and offloading (FPSO) unit, optimized power usage, and waste heat recovery systems. The company has also pledged to reinject associated gas into the reservoirs rather than flare it and install a permanent methane detection system to monitor leaks.
According to a report from Wood Mackenzie, Suriname and Guyana are on track to become competitive LNG suppliers by the early 2030s. The two countries could potentially produce up to 12 million metric tonnes of LNG per year. Guyana’s Haimara cluster and Suriname’s Block 52 (Sloanea) are estimated to hold 13 trillion cubic feet of discovered non-associated gas.
In addition to partnerships with major oil companies, Suriname has been strengthening its energy ties with regional and international players. In September 2023, Staatsolie signed a memorandum of understanding (MoU) with Brazilian oil giant Petrobras to collaborate on exploring and producing hydrocarbons, carbon capture and storage, renewable energy, and other initiatives. The two countries will also share knowledge and expertise in energy operations. Meanwhile, in November, Norway’s subsea services company Argeo announced an eight-year data agreement with Staatsolie, focusing on the acquisition, processing, and sale of multi-client data in Suriname.
Suriname’s oil and gas sector is expected to experience rapid growth, fueled by major new discoveries and a series of agreements with international oil companies. Staatsolie estimates that the country could see up to $26 billion in revenues once its oil projects are fully developed. However, Suriname’s government has made it clear that it will not take on excessive debt based on future oil revenue. Finance Minister Stanley Raghoebarsing emphasized in October that the country is committed to not pre-selling oil reserves or borrowing against future oil production, stating, “In no way do we want to pre-sell oil that we still have to lift, and collateralize that for easy money that will burden the next generation.”
Though Guyana has attracted more international media attention in recent years, Suriname is steadily expanding its oil and gas operations, with strong optimism for the future. The country’s offshore reserves are on track to transform Suriname into a significant international oil producer, bolstered by massive investments from energy giants like TotalEnergies and QatarEnergy.
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