TotalEnergies Confirms $10.5 Billion Suriname Project

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Suriname's efforts to exploit its potential oil and gas reserves have gained ground following a positive investment decision exceeding $10 billion by France's TotalEnergies SE (NYSE:TTE) (Courbevoie, France) and U.S. company APA Corporation (NASDAQ:APA) (Houston, Texas).

The Granmorgu Block 58 project, located 150 kilometers offshore, will see a total of 32 wells being drilled as part of a field development plan with estimated delivery of 220,000 barrels per day (BBL/d), starting in the first half of 2028. It will be the small, South American country's first major oil and gas project, and it hopes to emulate the major investments currently underway by oil and gas majors in neighboring Guyana. It is also the single largest international investment in the country. TotalEnergies has conducted detailed engineering studies at the Sapakara and Krabdagu fields, which have an estimated 750 million barrels of recoverable reserves. Suriname's state-owned oil company Staatsolie has the right to participate up to 20% in the development and production of Block 58. In June, Industrial Info reported that the company had secured a hull for its floating, production, storage and offshore (FPSO) vessel at Block 58 offshore Suriname. For additional information, see June 12, 2024, article - TotalEnergies Reserves Hull for Suriname FPSO.

The GranMorgu FPSO is designed to accommodate future tie-back opportunities that would extend its production plateau, TotalEnergies said, and the company has promised "significant investments in local content and job creation [that will] contribute to the development of the Surinamese economy." Local companies will be involved in logistics and well services, as well as the installation and operations of the subsea systems and the FPSO. It expects that local suppliers will receive more than $1 billion in contracts and that more than 6,000 jobs (2,000 direct and 4,000 indirect and induced) will be created.

"This landmark project marks the first offshore development in the country and capitalizes on our extensive expertise in deep offshore innovation. Launched only a year after the end of appraisal, GranMorgu fits with our strategy to accelerate time-to-market and develop low-cost and low emission oil projects," said Patrick Pouyanné, chairman and chief executive of TotalEnergies.

"This important decision will boost our domestic capabilities and investments and have a major impact on local content opportunities. Suriname is committed to a strong and loyal partnership and expects that the offshore oil and gas development will take off in compliance with environmental regulations and standards," said Chandrikapersad Santokhi, president of the Republic of Suriname. "Suriname and its people welcome and appreciate the final investment decision of Total Energies and APA Corporation regarding Block 58 with Staatsolie Suriname NV. We consider this a historic and milestone occasion, creating significant opportunities and revenue prospects for Suriname, as well as attracting investors worldwide."

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