Suriname’s Long-Awaited Oil Boom Finally Takes Shape

Core Insights - Suriname's government is banking on an oil boom similar to Guyana's following the discovery of oil in its territorial waters in January 2020, after years of economic mismanagement and corruption [1][2] - The oil discovery at Block 58, made by TotalEnergies and APA Corporation, revealed significant oil reserves, but development has faced delays due to poor drilling results and high gas-to-oil ratios [2][5] - TotalEnergies announced a $10.5 billion final investment decision for Block 58 in October 2024, aiming to develop the Sapakara and Krabdagu oil discoveries [5] Industry Developments - The Maka Central-1 well in Block 58 found 240 feet of oil pay and 164 feet of light oil and gas condensate pay, indicating substantial potential for oil extraction [2] - The GranMorgu development is targeting over 750 million barrels of recoverable oil reserves, with a planned commissioning in 2028 and a daily lifting capacity of 220,000 barrels [6] - Suriname's national oil company, Staatsolie, has acquired a 20% interest in the GranMorgu operation through a combination of bonds, cash reserves, and a syndicated loan [6] Economic Context - Suriname's GDP has collapsed by over 10% over the last decade, severely impacting its population of over 600,000, leading to civil unrest in February 2023 [1] - The anticipated oil boom was seen as a potential solution to the country's economic woes, but delays in development have hindered recovery efforts [5]