France’s TotalEnergies and U.S.-based APA Corporation have made a landmark investment decision to move forward with Suriname’s most promising oil and gas venture, Block 58. This project, valued at US$10.5 billion, is set to mark the country’s inaugural offshore oil production, with operations expected to commence in the first half of 2028.
The announcement, revealed at Suriname’s presidential cabinet in the presence of President Chan Santokhi, TotalEnergies CEO Patrick Pouyanne, APA CEO John Christmann, and Staatsolie CEO Annand Jagesar, positions Suriname to follow in the footsteps of its neighbour Guyana, which has seen major success in offshore oil production. Guyana, through a consortium led by ExxonMobil, has discovered over 11 billion barrels of recoverable oil and gas reserves. To date, Guyana has successfully launched three FPSOs offshore, all of which produce over 600,000 barrels of oil per day.
Suriname aims to maximize its revenue through a robust legal framework that includes higher royalties, taxes, and signing bonuses. These funds are slated for reinvestment in healthcare and local content initiatives, signaling a strategic approach to national development.
TotalEnergies and APA will jointly develop the Sapakara and Krabdagu fields, now collectively referred to as “Gran Morgu,” with recoverable resources estimated to exceed 700 million barrels. Pouyanne expressed pride in the project’s swift progress, highlighting that it took just one year to move from well appraisal to a final investment decision (FID).
A Floating Production Storage and Offloading (FPSO) facility is being constructed in Asia for the project. With a capacity of 200,000 barrels per day, it will be one of the largest in TotalEnergies’ portfolio. The contract for the FPSO, along with energy infrastructure partners SBM Offshore and Saipem, is part of a broader US$7 billion investment.
The field development plan includes the drilling of 32 new wells, signed by TotalEnergies and APA on Tuesday. TotalEnergies, as the project operator, intends to recover approximately US$1.4 billion spent on exploration since 2019.
Staatsolie, Suriname’s state energy company, has secured $175 million toward its 20% stake in the project and is working to raise additional funds through bank negotiations and a planned bond offer. CEO Jagesar noted that the deadline for Staatsolie to meet its investment commitment could be extended to December 2025 if necessary.
Commenting on the region’s potential, APA CEO Christmann highlighted the significant geological opportunities in the Atlantic Margin’s deep waters, which have already resulted in major discoveries in Guyana, Suriname, and Brazil.
“FID marks a point of no return,” said Staatsolie’s Jagesar. “Suriname will never be the same.”
