TotalEnergies is making its investments in the oil fields in Suriname a reality. The oil giant awarded contracts to the French groups TechnipFMC and Technip Energies, as well as the Italian company Saipem, for more than a billion dollars or euros each. As a reminder, TotalEnergies announced an investment in October “around $10.5 billion” in oil exploitation in Suriname, located in South America, with production expected to start in 2028.
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The group took the “final investment decision” for the development of “block 58 of the GranMorgu project”, off the coast of Suriname, including a production unit with a capacity of 220,000 barrels per day. The project “will develop the oil discoveries of the Sapakara and Krabdagu fields”about 150 kilometers from the coast, the oil giant indicated. The reserves are estimated at “more than 750 million barrels”.
The French oil company has several exploration licenses off the coast of Suriname. “This flagship project is the first offshore development in the country”Patrick Pouyanné, CEO of TotalEnergies, said in October.
Three “major contracts”
This Thursday, the Italian oil engineering company Saipem announced for its part that it had won a $1.9 billion contract from the French oil giant for the underwater development of this block 58 of the GranMorgu project.
For its part, the oil engineering group TechnipFMC announces having won a “major contract”not specifying the amount but indicating that, according to its definition, “a “major” contract is greater than $1 billion, which represents the value of the contractual scope awarded to the company. This contract will be included in incoming orders in the fourth quarter of 2024”according to its press release.
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The French company indicates that this engineering, procurement, construction and installation contract “will combine TechnipFMC’s cutting-edge subsea architecture with […] the best pipe laying capabilities (underwater, editor’s note) of Saipem ».
In a third press release, the engineering and services group Technip Energies announces “a major contract”, “representing more than a billion euros in turnover” and specifies that it will build and install “a floating production, storage and unloading vessel” for the GranMorgu website.
TotalEnergies wants to continue producing more oil
Total plans to increase its hydrocarbon production by 3% per year by 2030, mainly liquefied gas, “thanks to the launch in 2024 of six major projects (two in Brazil, Suriname, Angola, Oman, Nigeria)”, he announced at the beginning of October. A growth that will be “greater than 3%” per year over the next two years, whereas until now it was banking on growth of 2 to 3% over the next 5 years.
To justify this prolonged increase, CEO Patrick Pouyanné, in unison with the sector, highlighted the natural decline of oil fields and the increase in global demand for oil. “We must therefore continue to invest in oil”he said. “The reality is that demand for oil is increasing, by just under 1 million barrels per day” et “for the moment, we do not see any real impact from the penetration of low-carbon technologies”he pleaded.
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OPEC sees oil demand significantly increasing by 17% from 2023 to 2050, going against the efforts required to limit global warming, and forecasts from the International Energy Agency (IEA) which foresees a peak in the demand for all fossil fuels – oil, gas and coal – “in the coming years” of the current decade.
(With AFP)
