TotalEnergies Moves Forward with $9 Billion Oil Project in Suriname
Posted 14/09/2023 11:02
TotalEnergies, the French energy giant, is moving forward with its plans to develop a significant oil project in Block 58, offshore Suriname. The company recently completed appraisal drilling for the Sapakara South and Krabdagu oil discoveries, confirming combined recoverable resources of nearly 700 million barrels. This project represents a major step toward the development of Suriname's petroleum resources and aligns with TotalEnergies' strategy of low-cost, low-emission oil resource development.
The Block 58 project is operated by TotalEnergies, which holds a 50% interest, with APA Corporation owning the remaining 50%. The reserves, located in water depths between 100 and 1,000 meters, will be produced through a system of subsea wells connected to a floating production, storage, and offloading (FPSO) vessel situated 150 kilometers off the Suriname coast. This FPSO will have an oil production capacity of 200,000 barrels per day.
The development studies for the Block 58 project have been launched, setting the stage for a final investment decision (FID) expected by the end of 2024. Detailed engineering (FEED) studies are set to begin by year-end, with first production targeted for 2028. This ambitious project will represent an investment of approximately $9 billion.
TotalEnergies' commitment to responsible development is evident in its plans for the Block 58 project. The facilities will be designed for zero flaring, with associated gas reinjected into the reservoirs. The company aims to minimize greenhouse gas emissions and contribute to the energy transition story. Additionally, TotalEnergies plans to work closely with Suriname's national oil company, Staatsolie, to enhance local content and provide economic benefits to the region.
Suriname's President, Chandrikapersad Santokhi, sees this project as a positive development for the nation's economy, especially during challenging economic times. The income generated from offshore oil and gas will contribute to the prosperity and stability fund and support diversification into sustainable sectors such as agriculture and tourism.
TotalEnergies has been present in Suriname since 2019, with multiple significant discoveries in Block 58. The company is actively exploring Blocks 6 and 8 as well. TotalEnergies' investment in the development of low-cost, low-emission resources reflects its commitment to advancing the global energy transition.