TotalEnergies Prepares to Develop Major Oil Resources Offshore Suriname

French energy giant TotalEnergies has begun seeking deepwater rigs and support vessels to kickstart the development of vast oil reserves discovered off the coast of Suriname, according to anonymous sources familiar with the tenders, reported Bloomberg on Friday.

The Atlantic Basin’s exploration and resource development are now thriving, particularly following ExxonMobil’s significant progress in neighbouring Guyana and TotalEnergies’ plans to harness Suriname’s offshore discoveries.

In partnership with APA Corporation, TotalEnergies has already made several significant finds in Suriname. According to Bloomberg’s sources, the companies are expected to make a final investment decision (FID) as soon as next month on the development of some of these resources.

TotalEnergies has reportedly commissioned a hull for a 200,000-barrel-per-day production vessel, a strong indication that the company is moving forward with the project.

Annand Jagesar, managing director of Suriname’s state oil company, Staatsolie, told Bloomberg, “They have reserved this hull. You’re not going to pay a lot of money for that to have it sitting around.”

TotalEnergies and APA aim to finalise the FID for their Block 58 project by the end of 2024, with the first oil production targeted for 2028.

Crude oil discoveries in Suriname are estimated to unlock around 2.4 billion barrels of reserves, according to analysts from Wood Mackenzie. The consultancy also estimates that South America holds approximately 12.5 trillion cubic feet of natural gas reserves.

Over the past six years, nine offshore discoveries have been made in Suriname, but commercial development is still in the planning stages.

Suriname is often viewed as a potential repeat of Guyana’s oil boom, as both countries share the same hydrocarbon basin. However, progress in Suriname has been slower, with ExxonMobil’s tremendous success in Guyana’s Stabroek Block yet to be mirrored in Suriname.