Suriname's Energy Frontier: Unlocking the Potential of the Guyana-Suriname Basin
The smallest and least populated country in South America, the Republic of Suriname, is preparing for large-scale development of its offshore oil and gas reserves. Along with neighboring Guyana, it is part of one of the most promising new oil and gas regions in the world: the Guyana-Suriname Basin. Alongside Brazil, Namibia, and the Gulf of Mexico, this area is now a focal point for more limited deepwater oil exploration, given the energy transition.
Current activity in the basin is concentrated in the southeastern part of the Stabroek license in Guyana and offshore Blocks 58, 53, and 52 in Suriname. ExxonMobil, the operator off the coast of Guyana, has already discovered 11 billion barrels of recoverable oil and 480 billion cubic meters of gas. Wood Mackenzie estimates Suriname's offshore reserves at more than 2.4 billion barrels of oil and 350 billion cubic meters of gas.?
In early October 2024, the French company TotalEnergies announced its final investment decision (FID) for the GranMorgu project, offshore Suriname (Block 58), which will develop the Sapakara and Krabdagu oil finds. The project is expected to produce 220,000 barrels per day at peak and will cost approximately $10.5 billion. The first oil production is anticipated around 2028.
Suriname has the potential to become a significant oil and gas producer, which could benefit the country's economy and lift its population out of poverty. Despite these promising prospects, the road to success will be long and challenging. Can Suriname embrace sustainable development, diversify its economy, and strengthen its institutions? There is now a promise of a better economic and socially just future for Suriname, but the government must take the necessary steps to achieve it.
Written by: Mark Horstman
*This article is informative and is not to be used as legal, economic, or commercial advice.