TotalEnergies, the French Oil Giant says it has started to scour the market for deepwater rigs and support vessels to begin development of massive resources discovered offshore Suriname, anonymous sources, as reported by OilPrice, had told Bloomberg on Friday.
It’s a new lease of live at the Atlantic Basin at the moment according to the sources, with the exploration and resource development which has now began with a speed, following the huge development engagements offshore Guyana, reported to have been led by ExxonMobil, and of course the plans of TotalEnergies to tap the discovered resources in Guyana’s neighbor, Suriname.
TotalEnergies, which partners APA Corp offshore Suriname report reveals, has already made several discoveries in the area. However the companies are expected to make the final investment decision (FID) to develop part of the resources as early as next month, OilPrice reports Bloomberg’s sources as saying.
TotalEnergies has reportedly ordered a hull for a 200,000-bpd production vessel, the clearest sign yet that the French supermajor would be moving to develop the project report said.
“They have reserved this hull,” Annand Jagesar, managing director of Suriname’s state oil company, Staatsolie was quoted to have told Bloomberg.
“You’re not going to pay a lot of money for that to have it sitting around,” Jagesar added.
TotalEnergies and APA plan to make the final investment decision on the Block 58 project by the end of 2024, targeting first oil in 2028.
“Crude oil discoveries in Suriname have opened access to some 2.4 billion barrels in reserves, Wood Mackenzie analysts have estimated. The consultancy also reported the South American nation holds some 12.5 trillion cubic feet in natural gas reserves.”
OilPrice further reporting that a total of nine offshore discoveries had already been made in Suriname in the last six years even though commercial development of the fields are yet to take effect.
Suriname according to the report, is often seen as a candidate for a repeat of Guyana’s oil boom since the two neighboring countries share one hydrocarbon basin. However, exploration efforts have taken longer in it, and the “colossal success” of Exxon with the Stabroek Block and its dozen discoveries is yet to be replicated in Guyana’s neighbor.