Suriname’s Staatsolie sets near-term capex plan at US$275mn

Suriname national oil company Staatsolie’s projected capital allocation for 2025 and 2026 reaches US$128 million and US$147mn, respectively.

The bulk of capex will look to sustain onshore crude production through ongoing facility and process improvements and enhanced and improved oil recovery, company information shows.

Staatsolie is the country’s only producer of oil, which comes from the Tambaredjo, Calcutta and Tambaredjo-Northwest fields in Saramacca district and is piped to the NOC’s Tout Lui Faut refinery.

The operator reported record output of 6.27Mb (million barrels) last year compared with 6.14Mb in 2022, and development and production costs of US$10.76 per standard tank barrel and US$9.28/b, respectively, in 2023.

Oil reserves in 2023 stood at nearly 102Mb with 10.05Mb added.

Other planned spend will focus on sustainable energy projects, and the 189MW Brokopondo hydro and a 96MW thermal plant which are operated by Staatsolie Power Company Suriname and supplied 64% and 22% of Suriname’s electricity last year.

BLOCK 58

“We fully intend to exercise our option for up to 20% participation in this landmark project,” Staatsolie managing director and CEO Annand Jagesar said in a company report, referring to block 58.

The acreage is primed to be the country’s first deepwater crude contributor, with operator TotalEnergies due to make a final investment decision by year-end.

The development of the block is estimated at US$9bn, of which Staatsolie would contribute US$1.8bn.

“We are considering all options to finance our participation, from our own cash reserves, bonds, loans, partnerships with strategic and/or nonstrategic partners to other forms of financing or a combination of options,” according to Jagesar.

GAS MONETIZATION

And following neighboring Guyana’s footsteps, Suriname has set its sights on natural gas, driven by the fuel’s role in the energy transition.

“Though natural gas is more difficult to develop than oil and would involve creating infrastructure and markets from the ground up, we are committed to investigating ways to monetize natural gas development and offtake opportunities for our partners and the country,” Staatsolie said.

One opportunity would come from the Sloanea-1 gas discovery at deepwater offshore block 52, which Malaysia’s Petronas operates next to block 58.

Staatsolie Hydrocarbon Institute is in talks with Petronas to appraise a potential floating LNG gas development.