In difficulty in Mali and Niger, the French oil giant, TotalEnergies, will announce on Tuesday a ten billion dollar investment contract to exploit oil and gas in Suriname, as well as sign a development plan for a deposit, sources close to the negotiations told AFP on Monday.
The contract concerns Block 58, an area located approximately 140 kilometers from the coast of Suriname where Total has made “significant” hydrocarbon discoveries since 2020, according to these sources.
Initially, an amount of 9 billion dollars (eight billion euros) was agreed, but these same sources confirmed that the announced investment would ultimately amount to 10 billion dollars.
Surinamese President Chan Santokhi recently explained to the press that Total would announce its “final investment decision (DFI) at the beginning of October”.
Patrick Pouyanné, the group’s CEO, was due to arrive in the capital Paramaribo on Monday evening before a meeting scheduled for Tuesday with Mr. Santokhi, ahead of a press conference.
In September 2023, TotalEnergies announced the launch of the study for a nine billion dollar project.
The French oil company has several exploration licenses off the coast of Suriname.
TotalEnergies holds 50% of Block 58 and the American company APA Corporation the remaining 50%.
The block’s two deposits, Sapakara and Krabdagu, will be renamed « Gran Morgu » and production is expected at 200,000 barrels/day, with operations expected to begin in 2028.
The Surinamese national company Staatsolie will assert its participation rights to the tune of 20% and will therefore issue a third series of bonds in US dollars, in the first quarter of 2025, to finance them, indicated its general director Annand Jagesar.
Despite the difficulties it faces in Mali and Niger, this French giant will continue to invest in other countries around the world in order to exploit available gas and oil resources.
With AFP
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