Suriname anticipates making a Final Investment Decision (FID) for Block 52 by 2026, as announced by Annand Jagesar, Managing Director of Staatsolie, during the recent Guyana Energy Conference and Supply Chain Expo.
Jagesar informed the audience that he believes Suriname’s reservoir may not be as pristine as that of Guyana, which could prolong the process, as Suriname needs to integrate two distinct receptors to achieve the desired outcomes. He remarked, “This is an exciting project, and we are adopting a fast-track approach with the same contractor, PETRONAS. We have already made 10% progress on the project, securing nearly US$7 billion. This mitigates risk, and we are on the verge of finalizing a significant contract that will bring the total to around US$10 billion, effectively managing the project’s risks. So, we are right on your heels, sir.”
Jagesar also pointed out that while Suriname’s gas production may not exceed that of Guyana, it will closely follow. In Block 52, gas has been discovered, appraised, and tested successfully. “The flow tests were promising and met our expectations, indicating non-associated gas. If all goes well, we expect to reach FID by 2026,” he stated at the conference. Ongoing discussions with PETRONAS and the Surinamese government are progressing, and Jagesar expressed that “we are very open” regarding the future direction. The contractor benefits from a 10-year tax holiday. He further clarified that while the government may project substantial revenue, the viability of the project ultimately depends on the contractor’s success. “Thus, any projected figures for government revenue are merely hypothetical if the contractor does not succeed,” Jagesar concluded. He emphasized that Staatsolie and PETRONAS are committed to realizing this new project and expressed satisfaction with having the contractor involved.
SOURCE: Kaieteur News Online