PANAMA CITY, PANAMA (Piero Stewart and Pietro D. Pitts, Energy Analytics Institute, 2.Feb.2025) — Nestled on the northeaster coast of South America, Surname is a small yet resource rich country poised to emerged as a vital player in the Latin America and Caribbean energy and extractive sectors. Recent developments offshore highlight the country’s oil and gas potential and the government’s commitment to responsible resource management.
Suriname’s economic foundation lies in its exceptional reserves of minerals and oil, offering untapped opportunities in the extractive sector. Historically centered around gold, the nation is now experiencing the dawn of a burgeoning oil economy, which has potential to reshape the allocation of its natural wealth and fuel transformative growth as has been experience across the border in Guyana.
A major milestone in positioning Suriname as a regional oil and gas hub is the launch of its first offshore oil project by French energy giant TotalEnergies and its American partner APA Corporation. The project, concentrated in Block 58, includes plans for a state-of-the-art floating, production, storage, and offloading (FPSO) unit capable of processing 200,000 barrels per day (b/d) of oil.
TotalEnergies and APA announced their $10.5bn final investment decision (FID) for Block 58 on 1 Oct. 2024. State-owned Staatsolie Maatschappij Suriname N.V. has expressed its desire to enter the project with up to a 20% interest in the summer of 2025.
The project, dubbed GranMorgu, will develop 2 oil fields—Sapakara and Krabdagu—which have confirmed oil reserves of around 760 million barrels (MMbbls). These reserves could generate REVENUES OF $16bn-$26bn, sufficient to eradicate poverty across the small population of around 638,000, if managed prudently, Importantly, the project embraces sustainability by re-injecting produced gas into the reservoir, a move aimed at avoiding harmful flaring or venting and extending the production lifespan.
In the mining space, Suriname is strengthening its position through international collaboration. In mid-2023, the Suriname-China Investment Coordination Commission hosted a delegation from Wenzhou, China, to explore joint ventures in small-scale gold mining and rare minerals like cobalt and lithium. These partnerships aim to integrate advanced technology and enhance oversight, ensuring sustainable practices.
Suriname’s legacy in bauxite mining, a cornerstone of its economy, remains pivotal. The Supervisory Board of Bauxite Institute Suriname (BIS) is tasked with monitoring compliance. advising the government, and ensuring equitable revenue distribution from bauxite and alumina production, contributing to national growth.
Suriname’s energy infrastructure is undergoing a modernization push, notably at the Brokopondo hydropower station, A $30mn upgrade aims to safeguard operations and prevent catastrophic failures, such as dike breaches or blackouts affecting Paramaribo, the capital.
Staatsolie Power Company Suriname (SPCS) is aligning the Afobaka hydropower plant with US Federal Energy Regulatory Commission (FERC) standards. This initiative, alongside a $10mn low-interest loan and a $500,000 grant from the CARICOM Development Fund (CDF), underscores Suriname’s focus on enhancing energy reliability and sustainability
Suriname is making notable strides in balancing economic growth with environmental stewardship. In its mining space, particularly in gold and bauxite, continues to support the economy while advancing sustainable practices to reduce environmental impact and benefit local communities.
In the energy space, diversification and renewable energy adoption are priorities, supported by international investments and partnerships These efforts reflect a collective recognition of Suriname’s potential as a region, if not, global player in sustainable development.
With its abundant resources, strategic partnerships, and a commitment to sustainability, Suriname is poised for transformative growth. The synergy between responsible governance, international collaboration, and innovative practices ensures a prosperous future, reinforcing its standing in the global economic arena.
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By Piero Stewart reporting from Panama City with Pietro D. Pitts in Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.