APA Announces Final Investment Decision for First Oil Development Offshore Suriname

APA release

PARAMARIBO, Suriname, Oct. 01, 2024 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) announced today that its subsidiary has reached a positive final investment decision (FID) for the first oil development in Block 58, located offshore Suriname. The project has been named GranMorgu, which is derived from a local language and means both “new dawn” and “goliath grouper.”

GranMorgu will include production from the Krabdagu and Sapakara oil discoveries, where appraisal drilling confirmed gross estimated recoverable resources of more than 750 million barrels of oil. Total investment is estimated at $10.5 billion, with first oil in 2028. TotalEnergies EP Suriname B.V. is the operator of Block 58, with a 50% interest, alongside APA Suriname 58 Corporation LDC (50%). Staatsolie, Suriname’s national oil company, has the option to enter the development project with up to 20% interest upon FID.

At meetings held in Paramaribo, John J. Christmann IV, CEO of APA, met with His Excellency Chandrikapersad Santokhi, President of the Republic of Suriname, and Annand Jagesar, CEO of Staatsolie, to review the development plans for Block 58, as well as with Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“I would first like to recognize TotalEnergies and Staatsolie for their many contributions that have made today’s FID announcement possible,” Christmann said. “This first development offshore Suriname is a significant milestone for many stakeholders, including the people of Suriname, our joint venture and APA shareholders.”

“APA recognized the opportunities offshore Suriname and first entered the basin in 2012, expanding our position with the acquisition of Block 58 in 2015,” he said. “We look forward to working with our partners and the government of Suriname to help meet the world’s demand for affordable, reliable energy.”

The Sapakara and Krabdagu fields, located in water depths between 100 and 1,000 meters, will be produced through a system of subsea wells connected to a Floating Production, Storage and Offloading unit (FPSO) located 150 km (93 miles) off the Suriname coast, with an oil production capacity of 220,000 barrels per day. The GranMorgu FPSO is designed to accommodate future tie-back opportunities that would extend its 4-year production plateau.

GranMorgu will feature technology that minimizes greenhouse gas emissions, including an all-electric FPSO configuration with zero routine flaring and full reinjection of associated gas into the reservoirs, an optimized power usage with a waste heat recovery unit and deep-sea water cooling for improved efficiency, and installation of an advanced methane detection and monitoring system.

In addition to reaching approval for the Phase-1 Central Area Field Development, the partnership has retained optionality for further exploration in Block 58. This will allow the partnership to fully explore the significant remaining potential of the block in the proven trend, as well as untested plays.