Daily Newsletter

22 March 2024

Daily Newsletter

22 March 2024

Suriname in talks with Exxon, TotalEnergies for joint gas field development  

This move is part of Suriname's strategy to attract foreign investment in energy production and establish itself as a key gas hub in South America.  

Shivam Mishra March 21 2024

Suriname's state-owned oil company, Staatsolie, has initiated discussions with ExxonMobil and TotalEnergies to jointly develop natural gas fields along the maritime borders shared with Guyana, reported Reuters.   

This move is part of Suriname's strategy to attract foreign investment in energy production and establish itself as a key gas hub in South America.  

The nation expects its first significant offshore oil production to commence in approximately four years. 

Adjacent to Suriname, an Exxon-led consortium in Guyana has increased oil production to around 650,000 barrels per day.  

This consortium is also in talks with the Guyanese Government to exploit untapped gas fields for both domestic use and export, potentially creating a secondary revenue stream from energy for Guyana. 

It has delineated six projects in Guyana, confirming more than 11 billion barrels of recoverable resources, predominantly for crude oil production.  

A seventh project may primarily concentrate on gas.  

According to Staatsolie managing director Annand Jagesar, close to two of Exxon's gas-rich discoveries in Guyana are Suriname's fields, Maka and Kwaskwasi in Block 58, where TotalEnergies and APA have identified gas.  

Jagesar told the publication: "We have been talking to Total. They do not see an opportunity to make a feasible project as of yet from Maka and Kwaskwasi. Joining the Guyana and Suriname explorations, our projects, we can make that scale." 

However, challenges such as differing taxation and fiscal terms between Suriname and Guyana must be resolved before any collaborative gas development can proceed.  

Despite the initial focus on oil for Suriname's upcoming offshore output at TotalEnergies and APA's Block 58, the country envisions itself as a future gas hub.  

Jagesar referred to the "golden lane," a stretch of offshore reserves from Brazil to Guyana, known as the Equatorial Margin, stating: "The sweet spot is in Guyana, that is the best reservoir... It looks like we have more gas." 

TotalEnergies and APA are planning to finalise investment decisions for Block 58 later this year, targeting first oil production by 2028.  

Following Block 58, Block 52 may be the next to commence offshore production, where Malaysia's Petronas and Exxon are set to conduct further exploration.  

For Block 52, Staatsolie and Petronas have agreed on special fiscal terms including a ten-year tax exemption from the start of production, which could potentially be offered to other companies as well. 

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors


Sign up to the newsletter: In Brief

Your corporate email address *
First name *
Last name *
Company name *
Job title *
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.