TotalEnergies considers $9 billion oil project offshore Suriname

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TotalEnergies is launching development studies for a 200,000-bpd oil project offshore Suriname worth $9 billion, in what could be the first commercial crude production in the South American country neighboring the new hotspot for discoveries, Guyana.

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The French supermajor announced this week its intention to start detailed engineering studies (FEED) for a project in Block 58 by the end of 2023, during a visit by TotalEnergies CEO Patrick Pouyanné to Suriname to meet with Suriname’s President Chandrikapersad Santokhi and the CEO of state oil firm Staatsolie, Annand Jagesar.

TotalEnergies is the operator of Block 58, with a 50% interest, alongside APA Corporation which holds the remaining 50%. The companies expect to make a final investment decision by the end of 2024, with potential first oil targeted for 2028.

TotalEnergies and APA completed appraisals of the two main oil discoveries on the block, Sapakara South and Krabdagu, and confirmed combined recoverable resources close to 700 million barrels. The initial plans include production from these reserves through a system of subsea wells connected to a FPSO (Floating Production, Storage and Offloading unit) 150 km off the Suriname coast, with an oil production capacity of 200,000 barrels per day (bpd).

“This development is in line with TotalEnergies’ strategy aiming at the development of low cost, low emissions oil resources, and leverages on our Company’s expertise in deep water projects,” Pouyanné said.

TotalEnergies and APA Corp have so far announced five discoveries in the block, prompting predictions that the South American nation could soon start commercial production of crude and reach a daily output rate of 650,000 barrels by 2030.

According to the U.S. Geological Survey, the Guyana-Suriname Basin could hold up to 32.6 billion barrels of undiscovered oil resources, underscoring the tremendous hydrocarbon potential that the countries share. It is estimated that Suriname’s offshore oil discoveries held recoverable oil resources of nearly 2 billion barrels as of the end of 2021.