Suriname Awaits Drilling Of Third Apache Well Offshore

(Energy Analytics Institute, 4.Jul.2020) — Suriname, the small Dutch-speaking South America country looking to emulate the success of its immediate neighbor to the north, Guyana, is awaiting drilling results of a third well to be drilled offshore by US-based Apache Corporation and Paris-based Total.

The companies have already drilled two successful wells offshore in Block 58 and a third is expected soon, according to a Paramaribo-based energy advisor.

“We have the right to up to 20% in each of the finds offshore. So far there have been two and a third one is underway and we expect the news to be announced in two or three weeks or so,” Viren Ajodhia, energy advisor to the Progressive Reform Party (VHP) told Energy Analytics Institute (EAI), referring to Suriname’s state oil company Staatsolie Maatschappij Suriname N.V., who is the country’s national oil company and sector regulator.

Staatsolie, which produced 6 million barrels in 2019 and reported gross revenues of $500 million, according to details in its annual reported, plans investments of $1,053 million between 2020 and 2027, of which the company expects the majority, $903 million, will be generated from its own cash flow from operations. The planned investments don’t include amounts needed for the offshore Block 58.

Staatsolie has also already announced plans to capitalize on current and future oil finds offshore, and anticipates a future listing of equity and/or debt on an internationally renowned stock exchange, with aim to raise between approximately $1 billion and $2 billion, the company said in its annual report.

“The plan is to use the money from these future developments in a good way, and to make sure the money received by the new government is invested wisely,” Ajodhia said. “The last thing you want is a situation like Venezuela and we are very careful about that.”

Suriname’s presidential elections held on 25 May 2020 were won by VHP leader Chan Santokhi, who has formed a coalition government with a number of smaller parties, including the General Liberation and Development Party (ABOP), which is lead by Ronnie Brunswijk.


By Ian Silverman. © Energy Analytics Institute (EAI). All Rights Reserved.