Billion-Barrel Oil Discoveries Drive South American Energy Cooperation

Offshore Oil

Two of the biggest oil industry hotpots, Guyana and Suriname, are discussing joint development of natural gas resources off the coasts of the neighboring South American countries, according to Annand Jagesar, CEO of Suriname’s state firm Staatsolie.   

“It will not happen tomorrow, but it is important that we now have mutual confirmation that we want to work together. It may take years before we find a development concept,” Jagesar told Suriname-based outlet de Ware Tijd.

Guyana and Suriname will cooperate in drafting a development concept for some offshore reservoirs, the executive added. These could include the Makka and Kwaskwasi discoveries in Suriname, close to the border with Guyana, and the Haimara and Pluma discoveries in Guyana, which are also close to the border with Suriname.  

Guyana and Suriname have been the focus of oil and gas exploration in recent years, with billions of barrels of oil found in their offshore sediment basin. 

ExxonMobil has discovered more than 11 billion barrels of oil in place offshore Guyana and is prioritizing the country as a key growth driver of its asset and production base. 

Exxon and its partners in the Stabroek block offshore Guyana, U.S. Hess Corporation and CNOOC of China, currently produce all the oil in the South American country, which became the newest oil-exporting nation at the end of 2019.  

Exxon is currently producing a total of 665,000 barrels of oil per day in Guyana but over the longer term eyes production of over 1 million bpd. Total oil production in the country is seen rising to over 1.6 million bpd by 2030, as the government seeks to maximize returns from the industry before the predicted demand growth peak. 

In Suriname, French supermajor TotalEnegies has just announced its final investment decision (FID) for the GranMorgu project on offshore Block 58, which will develop the Sapakara and Krabdagu oil discoveries. The project, expected to pump 220,000 bpd at peak production, will cost around $10.5 billion, with first oil expected in 2028.   

By Tsvetana Paraskova for Oilprice.com

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Publish date : 2024-10-17 22:00:00

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