By Christian Moess Laursen
French energy major TotalEnergies said it would invest $10.5 billion in a large offshore oil-and-gas field in Suriname, in line with its push to expand its project portfolio outside of the restrictive legal environments of North America and Europe.
Europe’s second-largest integrated oil company by market value said Tuesday that it signed a final investment decision for the Gran Morgu field, which has estimated recoverable resources of more than 750 million barrels.
The project fits with TotalEnergies’ strategy of betting on low-cost, low-emission oil projects around the globe. This year, it has greenlit offshore oil fields in Brazil and Angola, along liquefied natural-gas projects in Nigeria and Oman.
Located around 150 kilometers, or 93 miles, off Suriname’s coast, the block lies adjacent to U.S. giant Exxon Mobil’s 11 billion-barrel discovery in oil-rich Guyana.
TotalEnergies will operate the Gran Morgu field alongside Texas-based APA Corp., with the hydrocarbon producers holding a 50% interest each. Suriname’s national oil company Staatsolie has an option to take a stake of up to 20%, which it has said it intends to exercise before June next year.
The investment will be the largest-ever in the Suriname oil-and-gas industry and the first commercial offshore oil development in the country. First production is expected to be in 2028.
Suriname’s president Chandrikapersad Santokhi said the investment is expected to create significant revenue prospects for Suriname, which has a gross domestic product of $4.34 billion. According to previous media reports, Staatsolie expects the development will bring in between $16 billion and $26 billion over its lifespan.
TotalEnergies’ investment decision comes only a year after the end of the appraisal exploration of the block. The global energy company entered Suriname in 2019 when it bought a 50% stake in the block.
Write to Christian Moess Laursen at [email protected]
(END) Dow Jones Newswires
October 01, 2024 09:37 ET (13:37 GMT)
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Publish date : 2024-09-30 19:37:00
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