Highlights From SEOGS2021: Block 58 FID, Bid Rounds, Acreage Opportunities

(Energy Analytics Institute, 1.Jun.2021) — Select highlights from 1 June 2021 from the Suriname Energy, Oil and Gas Summit or SEOGS2021, and speakers from President Chandrikapersad Santokhi to Staatsolie CEO Annand Jagesar follow.

1 JUNE: DAY 1

Suriname’s President Chandrikapersad Santokhi

— “A final investment decision (FID) for offshore Block 58 is expected in mid-2022, while first oil exports could flow by 2025.”

— Offshore Block 58, which is being explored by partners Apache and Total, and who have made four discoveries to-date, has estimated recoverable resources of approximately 1.9 billion barrels of oil equivalent.

— Government is committed to implementing policies for developments and promoting foreign direct investment (FDI) in the country.

— Investors can expect to see a general improvement in the business environment and ease of doing business.

— Government is looking to maximum local content and strengthen the local business environment.

— “Local content important, but transferring of knowledge is also important.”

— “The economy in dire need of recovery. We are seeking short-term economic growth and long-term stability.”

— “Our oil revenues need to be managed strategically. This is not just about business, but building a sustainable future for the citizens.

— “Diversification of the economy is necessary to avoid the Dutch Disease.”

Staatsolie CEO Annand Jagesar

— “We are open for business and our proposition includes demand, supply and skills gaps and a need for goods, services and manpower; non-Surinamese companies; and manpower to be trained, among others.”

— Opportunities for direct investments in oil and gas

– Deep Offshore: Some open areas offshore and onshore. Some contractor parties may consider farm-ins

– Gas: development supply and demand

– Shallow shore: just completed West blocks bid round. To come, Mid and East blocks

Suriname’s Minister of Natural Resources David Abiamofo

— “Suriname is now at a cross roads of sorts in terms in oil and gas sector.”

Staatsolie Executive Angèle Ramsaransing-Karg

— “Onshore we want to operate independently but we also have identified some areas where we want to find a partner. The same goes for offshore where we want to attract partners, however, the distinction is that in the shallow offshore we have the ambition to become a competent operator in due time. In the deep water we want to become a competent non-operating partner.”

— Onshore strategy: secure upstream future through long-term access to reserves and production; operation onshore independently; and find partners for open blocks. Onshore activities in 2021 to watch include: exploration drilling in the Nickerie block; and pilot testing and drilling in the Weg Naar Zee Block.

— Deep water offshore strategy: attract partners; build capabilities to become a competent non-operating partner. Deep water offshore activities in 2021 to watch include: Block 58 (Total and Apache) … exploration and appraisal drilling as well as shallow hazard and environmental baseline surveys; Block 52 (Exxon and Petronas) … exploration drilling as well as 3D seismic acquisition; Block 47 (Tullow Oil) … exploration drilling; and Block 42 (Shell) … details to come after initial acquisition by Shell from Kosmos.

— Deep water opportunities: SHI is updating offshore portfolio enabling Staatsolie to carve out strategic investment campaigns for the benefit of Suriname; the recently relinquished Block 45; and synergizing possibilities for multi-client.

— Shallow offshore strategy: attract partners; build capabilities to become a competent non-operating partner. Shallow offshore activities to watch in 2021 include: shallow offshore (west) … Successful license round, 10 bids received over three blocks; much interest from seismic contractors; and first shot planned in 4Q:21. Opportunities include multiple licensing rounds with SQM partnership.

— “These strategies are driven by the level of risk, capital investments needed, and also the capabilities that we should need and the resources that are needed to operate in these different parts of our acreage.”

— “We have a wide range of investment opportunities ranging from onshore to shallow water to deep water acreage, and excellent data coverage over the basin and committed to data acquisition with multi-client strategy.”

— The shallow water bid round has focused on eight blocks, and we have received 10 bids in the northern area. Results of the bid round are expected soon.

Editor’s Note: Energy Analytics Institute (EAI) is an official media partner for SEOGS2021.

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By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.