TotalEnergies and Staatsolie Maatschappij Suriname N.V, the Suriname national oil company, said they have taken “several significant steps” towards a final investment decision (FID) on the development of offshore Block 58 in Suriname.
The FID is expected in the fourth quarter, while the start of production at the asset is seen in 2028, TotalEnergies said in a news release.
TotalEnergies is the operator of Block 58 with a 50 percent interest, alongside APA Corporation, which also has 50 percent. Staatsolie has the option to enter the development project with up to 20 percent interest upon FID.
Some key milestones have been recently reached as the companies move towards an FID, according to the release. An agreement was concluded between Staatsolie and TotalEnergies on the field development area, maximizing the value for Suriname and the Block 58 co-venturers over the production period of 25 years. In addition, the hull for the development’s floating production storage and offloading (FPSO) unit has been secured, with a capacity of 200,000 barrels of oil per day.
TotalEnergies said that engineering studies (FEED) are progressing for the development of the Sapakara and Krabdagu fields, with combined recoverable resources estimated above 700 million barrels, due to the integration of Water Alternating Gas (WAG) injection technology to maximize recovery.
Ocean Bottom Node (OBN) seismic technology will also play a key role in maximizing resources and the placement of the development wells, as well as identifying resource upsides. A first OBN campaign covering 347.5 square miles (900 square kilometers) will be carried out in the second half of 2024, the company said.
“We are glad to progress together with Staatsolie and APA towards the FID of Block 58, which will be the next milestone in the partnership between Suriname and TotalEnergies,” Javier Rielo, Senior Vice President Americas, Exploration & Production at TotalEnergies, said. “Our company is deploying advanced technologies to minimize the environmental impact and maximize resource recovery, while focusing on ensuring economic benefits for the country”.
“Staatsolie is happy to progress towards the development of this project with a world-renowned partner in such a way that Suriname optimally benefits not only from large financial streams but as well from a design and execution that will safeguard safe and clean operations,” Staatsolie CEO Annand Jagesar said.
TotalEnergies said it is committed to developing the project responsibly using the best technologies to minimize greenhouse gas emissions. In particular, the facilities will be designed for zero routine flaring, with all associated gas reinjected into the reservoirs. During the development and production phases, TotalEnergies will work closely with Staatsolie to enhance local content, as already demonstrated during the exploration and appraisal phases, with over 80 people trained for logistics operations in Paramaribo.
According to Wood Mackenzie, Suriname’s discovered oil resources total more than 2.4 billion barrels of crude and liquids, and the nation has more than 12.5 trillion cubic feet of gas.
