The former Dutch colony of Suriname has its eyes set on replicating the massive economic boom experienced by neighboring Guyana, which has reaped the benefits of one of South America’s largest oil booms in recent times. Suriname’s impoverished economy is counting on the substantial petroleum wealth lying beneath its territorial waters to alleviate its financial woes.
After promising discoveries in Block 58 offshore Suriname, TotalEnergies and APA Corporation announced a commitment to undertaking development studies, typically a precursor to a final investment decision (FID), which is expected by year-end 2024.
TotalEnergies and APA have identified a 700-million-barrel recoverable resource connected to the Sapakara and Krabdagu discoveries, signifying the potential scale of Suriname’s offshore oil wealth. The oil in Block 58 is particularly attractive due to its light and sweet characteristics, making it easier and cheaper to process into high-quality low-emission fuels, a crucial factor in the transition to a low-carbon economy.
However, the global push towards net zero emissions adds a sense of urgency to Suriname’s plans. The country faces pressure to exploit its resources while also ensuring sustainable development and mitigating the environmental impacts of oil production.
Despite the challenges, Suriname’s offshore oil resources remain highly profitable, with low breakeven prices and favorable costs, making it a promising investment for oil companies and a potential economic lifeline for the nation.
