Potential for cross-block oil hub in Suriname under study

Technical studies will help determine the potential for an oil hub project across Suriname offshore acreage, according to APA chief executive John Christmann.

“We’ve got a lot of work to do in terms of 'does Baja potentially flow into an oil hub in block 58 or does it make up its own project in block 53?',” the CEO said during the company’s second quarter earnings call.

The Houston-based upstream company has 50% and 45% working interests in block 58 and 53, respectively. The latter area is home to the Baja prospect.

The principal oil hub opportunity envisions linking block 58 prospects Sapakara and Krabdagu with combined in place oil resource estimated at 800 million barrels, which does not include appraisal wells Krabdagu 2 and 3.

Block 58 would be Suriname’s first deepwater contributor of oil and gas. A declaration of commerciality and a final investment decision have yet to be made.

Christmann highlighted that Krabdagu 2 results were in line with pre-drill expectations and Krabdagu 3 is in the pressure build-up phase.

“Data collected thus far [for Krabdagu 3] is very encouraging,” said Christmann, who added that no additional appraisal or exploratory drilling at Sapakara and Krabdagu is necessary at this time.

APA’s upstream capital investment for the South American country in 1H23 totaled US$46mn, or 4.55% of companywide upstream spend.

Source: APA