(Energy Analytics Institute, 8.Sep.2024) — APA Corporation recently provided additional details around the final investment decision (FID) taken offshore Suriname with its French partner TotalEneriges.
The development is the first deep oil development offshore Suriname.
Appraisal drilling confirmed gross estimated recoverable resources of more than 750 million barrels of oil, which is up from the prior 700 million barrels, Truist analysts Neal Dingmann, Bertrand Donnes and Jack Wilson wrote 8 Oct. 2024 in a research report.
“We believe first oil could potentially come as early as late 2027 with APA only having to pay a minimal amount of the estimated $10.5bn total investment including what we believe could likely be less than $200mn next year,” the Truist analysts wrote in their report.
“We continue to believe APA’s 50-50 JV with TotalEnergies’ subsidiary to be one of the best deals signed in recent years given the 12.5% early payment requirement along with various other aspects of the contract. We forecast APA could generate a return will above 30% on its investment in the play including potential upside beyond the first development project,” the Truist analysts wrote.
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By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.
