APA Corporation (APA) is experiencing a surge in its stock price following the company’s announcement of a Final Investment Decision (FID) for the inaugural oil development in Block 58, located offshore Suriname. This decision marks a significant milestone in the company’s expansion plans.
Back in June 2024, APA, alongside TotalEnergies SE (TTE) and Staatsolie Maatschappij Suriname, unveiled key advancements towards the FID for developing offshore Block 58. TotalEnergies and APA are the joint operators of Block 58, each holding a 50% stake. Staatsolie, Suriname’s national oil company, holds the option to join the development project with up to a 20% interest once the FID is formally made.
The GranMorgu project, which will utilize technology to minimize greenhouse gas emissions, involves a substantial investment estimated at $10.5 billion. The project is expected to bring its first oil to market in 2028. GranMorgu will leverage the Krabdagu and Sapakara oil discoveries, with confirmed gross estimated recoverable resources exceeding 750 million barrels of oil, based on appraisal drilling. The project will implement an all-electric FPSO configuration, ensuring zero routine flaring and complete reinjection of associated gas into reservoirs.
Beyond the initial Phase-1 Central Area Field Development, the partnership has retained the option for additional exploration within Block 58. This option opens doors for the companies to comprehensively investigate the substantial untapped potential of the block within the established trend, as well as explore untested areas.
Investors seeking exposure to APA can consider Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (OILT) and Octane All-Cap Value Energy ETF (OCTA).
APA shares experienced a remarkable 4.80% surge, closing at $25.64 at the last check on Tuesday.
