Suriname: TotalEnergies, APA Corporation and Staatsolie Progress towards Final Investment Decision on Block 58
At the 2024 Suriname Energy Oil and Gas Summit, TotalEnergies (TTE) and Staatsolie announced significant progress toward the Final Investment Decision (FID) for Block 58, expected in Q4 2024. Production is set to commence in 2028. TotalEnergies holds a 50% interest, with APA and Staatsolie potentially holding 50% and up to 20% respectively. Key milestones include engineering studies for Sapakara and Krabdagu fields, estimated to hold over 700 million barrels of recoverable resources, and securing a 200,000 bpd FPSO unit. Advanced technologies like Water Alternating Gas (WAG) injection and Ocean Bottom Node (OBN) seismic technology will optimize recovery and development. The project emphasizes minimizing greenhouse gas emissions and enhancing local content and economic benefits for Suriname.
- Significant progress towards FID for Block 58, expected in Q4 2024.
- Production start-up planned for 2028.
- TotalEnergies holds a 50% stake; APA holds 50%; Staatsolie may hold up to 20%.
- Engineering studies (FEED) advancing for Sapakara and Krabdagu fields.
- Recoverable resources estimated above 700 million barrels.
- 200,000 bopd FPSO unit secured.
- Use of advanced technologies like WAG injection to maximize recovery.
- OBN seismic technology to optimize resources and well placement.
- Project designed for zero routine flaring and associated gas reinjection.
- Commitment to local content enhancement with over 80 people trained in logistics.
- Final Investment Decision only expected in Q4 2024, with production not starting until 2028, indicating a long lead time.
- Dependence on successful integration of advanced technologies like WAG and OBN, which may carry implementation risks.
- Significant capital expenditure implied by securing a 200,000 bopd FPSO unit.
Insights
The announcement regarding the progress towards the Final Investment Decision (FID) for Block 58 in Suriname is noteworthy for energy market stakeholders. The partnership between TotalEnergies, APA Corporation and Staatsolie Maatschappij Suriname N.V. signals a significant investment in offshore oil development, projected to start production by 2028. The estimated recoverable resources above 700 million barrels highlight the potential scale of this project.
From an energy market perspective, the utilization of advanced technologies such as Water Alternating Gas (WAG) injection and Ocean Bottom Node (OBN) seismic technology is crucial. These technologies are designed to enhance oil recovery and optimize well placement, potentially leading to more efficient and productive operations. Investors should note the commitment to minimizing environmental impact, particularly the design for zero routine flaring and reinjection of associated gas, which aligns with global sustainability trends and regulations.
However, it's important to recognize the long timeline before production begins in 2028, which may impact the immediate attractiveness of the investment. Market conditions, oil prices and geopolitical factors will play a significant role in determining the project's eventual success and profitability.
The environmental considerations outlined in the project for Block 58 are commendable. The integration of technologies aimed at reducing greenhouse gas emissions, such as zero routine flaring and associated gas reinjection, reflect a growing industry trend towards more sustainable practices. These measures are important for both regulatory compliance and public perception, as investors and consumers alike are increasingly valuing environmental responsibility.
Furthermore, the commitment to training and enhancing local content is beneficial for the socio-economic fabric of Suriname. Over 80 people have already been trained for logistics operations, indicating a positive impact on local employment and skill development. This not only supports the community but can also lead to smoother project operations by leveraging local expertise.
While these efforts are laudable, the long-term environmental and community impacts remain to be seen. Continuous monitoring and transparent reporting will be essential to ensure that the project adheres to its sustainability commitments over its lifecycle.
On the occasion of the 2024 Suriname Energy Oil and Gas Summit, Javier Rielo, Senior Vice President Americas, Exploration & Production for TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE), and Annand Jagesar, CEO of Staatsolie Maatschappij Suriname N.V, the Suriname National Oil Company, announced several significant steps towards the Final Investment Decision (FID) of the development of offshore Block 58. This decision is expected in the fourth quarter of 2024, for a production start-up in 2028.
TotalEnergies is the operator of Block 58 with a
Engineering studies (FEED) are progressing for the development of the Sapakara and Krabdagu fields, with combined recoverable resources estimated above 700 million barrels thanks to the integration of Water Alternating Gas (WAG) injection technology to maximize recovery. Ocean Bottom Node (OBN) seismic technology will also play a key role in maximizing resources and the placement of the development wells, as well as identifying resource upsides. A first OBN campaign covering 900 km2 will be carried out in second half of 2024.
Some key milestones have been recently reached in the path towards FID. An agreement was concluded between Staatsolie and TotalEnergies on the field development area, maximizing the value for Suriname and the Block 58 co-venturers over the 25 years Production Period. In addition, the hull for the 200,000 barrels of oil per day (bopd) Floating Production Storage and Offloading (FPSO) unit has been secured.
TotalEnergies is committed to developing this project responsibly using the best technologies to minimize greenhouse gas emissions. In particular, the facilities will be designed for zero routine flaring, with all associated gas reinjected into the reservoirs. During the development and production phases, TotalEnergies will work closely with Staatsolie to enhance local content, as already demonstrated during the exploration and appraisal phases, with over 80 people trained for logistics operations in
“We are glad to progress together with Staatsolie and APA towards the FID of Block 58, which will be the next milestone in the partnership between Suriname and TotalEnergies. Our Company is deploying advanced technologies to minimize the environmental impact and maximize resource recovery, while focusing on ensuring economic benefits for the country,” said Javier Rielo, Senior Vice President Americas, Exploration & Production at TotalEnergies.
“Staatsolie is happy to progress towards the development of this project with a world-renowned partner in such a way that Suriname optimally benefits not only from large financial streams but as well from a design and execution that will safeguard safe and clean operations,” said Annand Jagesar, CEO of Staatsolie.
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About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.
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FAQ
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