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]

Core Insights - Guyana has rapidly developed its oil production capabilities, reaching 900,000 barrels per day by November 2025, making it South America's third-largest oil producer [1][4][5] - The Stabroek Block, covering 6.6 million acres, is key to this growth, with ExxonMobil leading operations and significant recoverable oil resources estimated at around 11 billion barrels [3][4][6] - The production sharing agreement (PSA) between Exxon and the Guyanese government has been highly favorable for the consortium, allowing for a low royalty rate and a significant portion of revenue classified as cost oil [7][9] Production Developments - ExxonMobil's Yellowtail project came online in August 2025, contributing to the overall production increase [1] - Guyana's oil production has grown from zero to nearly one million barrels per day in just a decade, surpassing Ecuador, Colombia, and Argentina [5] - Future production is expected to rise to 1.7 million barrels per day by 2030, driven by four additional projects under development by Exxon [5] Geopolitical and Economic Context - Guyana's emergence as a top oil producer has transformed its economy, elevating it among the wealthiest nations in South America [4] - The favorable PSA was initially offered to attract investment after decades of unsuccessful exploration [8] - Recent revisions to the PSA have increased the government's share of profits, reflecting a response to global criticism [9] Exploration and Future Prospects - Exxon continues to explore additional prospects within the Stabroek Block, including the Hamlet-1 and Lukanani-2 wells [6] - Chevron, a partner in the Stabroek Block, has indicated that the oil reserves may exceed the current estimates of 11 billion barrels [6] - The average breakeven price for oil production in the Stabroek Block is approximately $30 per barrel, one of the lowest in South America [9]

Suriname officially elected its first female president as the small, Dutch-speaking nation on the Caribbean coast of South America prepares to navigate an oil boom https://t.co/8jgtI252Q3 ...