APA Announces Final Investment Decision for First Oil Development Offshore Suriname
APA has announced a positive final investment decision (FID) for the first oil development in Block 58, offshore Suriname. The project, named GranMorgu, will include production from the Krabdagu and Sapakara oil discoveries, with estimated recoverable resources of over 750 million barrels of oil. The total investment is estimated at $10.5 billion, with first oil expected in 2028.
The development will feature a Floating Production Storage and Offloading (FPSO) unit with a capacity of 220,000 barrels of oil per day. TotalEnergies EP Suriname B.V. is the operator with a 50% interest, alongside APA Suriname 58 LDC (50%). The project will incorporate new technologies to minimize greenhouse gas emissions, including an all-electric FPSO configuration with zero routine flaring and full reinjection of associated gas.
APA ha annunciato una decisione finale di investimento (FID) positiva per il primo sviluppo petrolifero nel Blocco 58, al largo della costa del Suriname. Il progetto, denominato GranMorgu, includerà la produzione dalle scoperte petrolifere di Krabdagu e Sapakara, con risorse recuperabili stimate superiori a 750 milioni di barili di petrolio. L'investimento totale è stimato in 10,5 miliardi di dollari, con il primo petrolio previsto per il 2028.
Lo sviluppo presenterà un'unità di Floating Production Storage and Offloading (FPSO) con una capacità di 220.000 barili di petrolio al giorno. TotalEnergies EP Suriname B.V. è l'operatore con una partecipazione del 50%, insieme ad APA Suriname 58 LDC (50%). Il progetto incorporerà nuove tecnologie per ridurre al minimo le emissioni di gas serra, inclusa una configurazione FPSO completamente elettrica con nessuna torcia di routine e piena reiniezione del gas associato.
APA ha anunciado una decisión final de inversión (FID) positiva para el primer desarrollo de petróleo en el Bloque 58, frente a las costas de Surinam. El proyecto, llamado GranMorgu, incluirá la producción de los descubrimientos de petróleo de Krabdagu y Sapakara, con recursos recuperables estimados de más de 750 millones de barriles de petróleo. La inversión total se estima en 10.5 mil millones de dólares, con el primer petróleo esperado para 2028.
El desarrollo contará con una unidad de Floating Production Storage and Offloading (FPSO) con una capacidad de 220,000 barriles de petróleo por día. TotalEnergies EP Suriname B.V. es el operador con un interés del 50%, junto a APA Suriname 58 LDC (50%). El proyecto incorporará nuevas tecnologías para minimizar las emisiones de gases de efecto invernadero, incluido un FPSO totalmente eléctrico con cero quema de rutina y reinyección total del gas asociado.
APA는 수리남 해안의 블록 58에서 첫 번째 석유 개발에 대한 긍정적인 최종 투자 결정(FID)을 발표했습니다. 이 프로젝트는 GranMorgu라는 이름으로, 크라브다구 및 사파카라 석유 발견에서 생산이 이루어지며, 회수 가능한 자원은 7억 5천만 배럴 이상의 석유로 추정되고 있습니다. 총 투자 금액은 105억 달러로 추정되며, 첫 번째 석유 생산은 2028년으로 예상됩니다.
이 개발은 하루 22만 배럴의 석유를 처리할 수 있는 부유식 생산 저장 및 하역(FPSO) 단위를 특징으로 합니다. TotalEnergies EP Suriname B.V.는 50%의 지분을 가진 운영자가 있으며, APA Suriname 58 LDC와 함께 50%의 지분을 가지고 있습니다. 이 프로젝트는 온실가스 배출을 최소화하기 위해 새로운 기술을 통합할 것이며, 여기에는 일상적인 가스 연소가 없는 완전 전기 FPSO 구성과 연관 가스를 완전 재주입하는 시스템이 포함됩니다.
APA a annoncé une décision d'investissement finale (FID) positive pour le premier développement pétrolier dans le bloc 58, au large du Suriname. Le projet, nommé GranMorgu, comprendra la production des découvertes pétrolières de Krabdagu et Sapakara, avec des ressources récupérables estimées à plus de 750 millions de barils de pétrole. L'investissement total est estimé à 10,5 milliards de dollars, avec le premier pétrole attendu en 2028.
Le développement présentera une unité de Floating Production Storage and Offloading (FPSO) avec une capacité de 220 000 barils de pétrole par jour. TotalEnergies EP Suriname B.V. est l'opérateur avec une participation de 50%, aux côtés d'APA Suriname 58 LDC (50%). Le projet intégrera de nouvelles technologies pour minimiser les émissions de gaz à effet de serre, y compris une configuration FPSO entièrement électrique sans torchage de routine et une réinjection complète du gaz associé.
APA hat eine positive endgültige Investitionsentscheidung (FID) für die erste Ölförderung im Block 58 vor der Küste von Surinam bekannt gegeben. Das Projekt, das den Namen GranMorgu trägt, wird die Förderungen aus den Ölfunden Krabdagu und Sapakara umfassen, mit geschätzten rückgewinnbaren Ressourcen von über 750 Millionen Barrel Öl. Die Gesamtkosten der Investition werden auf 10,5 Milliarden US-Dollar geschätzt, wobei das erste Öl für 2028 erwartet wird.
Die Entwicklung wird ein Floating Production Storage and Offloading (FPSO)-Gerät mit einer Kapazität von 220.000 Barrel Öl pro Tag umfassen. TotalEnergies EP Suriname B.V. ist der Betreiber mit einem Anteil von 50%, zusammen mit APA Suriname 58 LDC (50%). Das Projekt wird neue Technologien integrieren, um die Treibhausgasemissionen zu minimieren, einschließlich einer vollständig elektrischen FPSO-Konfiguration ohne routinemäßige Abfackelung und vollständige Wiedereinspeisung des zugehörigen Gases.
- Final investment decision reached for first oil development in Block 58, offshore Suriname
- Estimated recoverable resources of over 750 million barrels of oil
- FPSO unit with 220,000 barrels of oil per day production capacity
- Implementation of technologies to minimize greenhouse gas emissions
- Potential for future tie-back opportunities to extend production plateau
- High total investment of $10.5 billion
- First oil production not expected until 2028
Insights
The final investment decision for the GranMorgu project in Block 58 offshore Suriname marks a significant milestone for APA and the Surinamese oil industry. With an estimated
Key points to consider:
- Estimated recoverable resources of over 750 million barrels of oil indicate a substantial reserve base
- The 50-50 joint venture with TotalEnergies spreads risk and capital requirements
- First oil expected in 2028 suggests a long-term growth catalyst for APA
- Advanced technologies for emissions reduction align with growing ESG concerns
- Potential for future tie-backs and exploration upside in Block 58
For investors, this project represents a significant long-term value driver for APA, potentially transforming its production profile and financial outlook. However, the extended timeline to first oil and substantial capital requirements may impact near-term financial flexibility and returns.
The GranMorgu project's focus on minimizing greenhouse gas emissions is noteworthy in the context of increasing global pressure on the oil and gas industry to reduce its environmental impact. Key technological features include:
- All-electric FPSO configuration with zero routine flaring
- Full reinjection of associated gas into reservoirs
- Optimized power usage with waste heat recovery and deep-sea water cooling
- Advanced methane detection and monitoring system
These innovations demonstrate APA's commitment to sustainable practices, which could enhance its ESG profile and potentially mitigate regulatory and reputational risks. The emphasis on efficiency and emissions reduction may also lead to long-term cost savings and operational benefits. Investors should view these environmental considerations as increasingly important factors in the project's overall risk-return profile and the company's future competitiveness in a carbon-constrained world.
- 50-50 joint venture with TotalEnergies’ subsidiary (Block 58 operator) for 220,000 barrels of oil per day Floating Production Storage and Offloading (FPSO) unit
- First oil production from the Krabdagu and Sapakara fields anticipated in 2028
- Project to feature new technologies to minimize greenhouse gas emissions
PARAMARIBO, Suriname, Oct. 01, 2024 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) announced today that its subsidiary has reached a positive final investment decision (FID) for the first oil development in Block 58, located offshore Suriname. The project has been named GranMorgu, which is derived from a local language and means both “new dawn” and “goliath grouper.”
GranMorgu will include production from the Krabdagu and Sapakara oil discoveries, where appraisal drilling confirmed gross estimated recoverable resources of more than 750 million barrels of oil. Total investment is estimated at
At meetings held in Paramaribo, John J. Christmann IV, CEO of APA, met with His Excellency Chandrikapersad Santokhi, President of the Republic of Suriname, and Annand Jagesar, CEO of Staatsolie, to review the development plans for Block 58, as well as with Patrick Pouyanné, Chairman and CEO of TotalEnergies.
“I would first like to recognize TotalEnergies and Staatsolie for their many contributions that have made today’s FID announcement possible,” Christmann said. “This first development offshore Suriname is a significant milestone for many stakeholders, including the people of Suriname, our joint venture and APA shareholders.”
“APA recognized the opportunities offshore Suriname and first entered the basin in 2012, expanding our position with the acquisition of Block 58 in 2015,” he said. “We look forward to working with our partners and the government of Suriname to help meet the world’s demand for affordable, reliable energy.”
The Sapakara and Krabdagu fields, 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 unit (FPSO) located 150 km (93 miles) off the Suriname coast, with an oil production capacity of 220,000 barrels per day. The GranMorgu FPSO is designed to accommodate future tie-back opportunities that would extend its 4-year production plateau.
GranMorgu will feature technology that minimizes greenhouse gas emissions, including an all-electric FPSO configuration with zero routine flaring and full reinjection of associated gas into the reservoirs, an optimized power usage with a waste heat recovery unit and deep-sea water cooling for improved efficiency, and installation of an advanced methane detection and monitoring system.
In addition to reaching approval for the Phase-1 Central Area Field Development, the partnership has retained optionality for further exploration in Block 58. This will allow the partnership to fully explore the significant remaining potential of the block in the proven trend, as well as untested plays.
About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2023, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Cautionary note to investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. APA may use certain terms in this news release, such as "resources," "potential resources," "resource potential," "estimated net reserves," "recoverable reserves," and other similar terms that the SEC guidelines strictly prohibit APA from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in APA’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2023 available from APA at www.apacorp.com or by writing APA at: 2000 W. Sam Houston Pkwy S, Ste. 200, Houston, TX 77042 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1- 800-SEC-0330 or from the SEC's website at www.sec.gov.
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