French TotalEnergies and APA Corp. from the United States have announced a historic $10 billion investment to extract oil off the coast of Suriname. The project, known as GranMorgu, is expected to produce 220,000 barrels per day by mid-2028. TotalEnergies CEO Patrick Pouyanné personally flew to Suriname to announce the investment, calling it the largest in the country’s history. President Chan Santokhi described it as a day that will determine Suriname’s future, highlighting the significance of the investment for the country.
Staatsolie, the local national oil producer representing the Surinamese government, plans to issue bonds in 2025 to finance its 20% stake in the project under the production sharing contract. The company has already received an initial $175 million payment and is in talks with banks to secure a second payment. The anticipated revenue from the project is expected to help raise the standard of living in a country with a poverty rate of 18%. President Santokhi believes that this investment will be a game-changer for Suriname, which currently holds $3.5 billion in debt and is undergoing an IMF restructuring program.
Annand Jagesar, the CEO of Staatsolie, expressed optimism about the impact of the oil exploration deal on Suriname, stating that the country will never be the same. However, he also warned about the potential risks of poor governance, citing the example of Venezuela, which struggled economically despite having abundant oil reserves due to its dependence on oil. TotalEnergies has committed to developing the project responsibly and minimizing greenhouse gas emissions by utilizing advanced technologies.
The oil exploration deal with TotalEnergies and APA Corp. is seen as a significant milestone for Suriname, with officials emphasizing the potential benefits for the country’s economy and population. President Santokhi highlighted the importance of the investment in helping to alleviate poverty and improve living standards in Suriname. The project is expected to bring in substantial revenue, which could have a transformative impact on the country’s financial situation, particularly as it continues to navigate its debt and IMF restructuring program.
The GranMorgu project in Suriname is focused on an offshore area believed to contain 700 million barrels of oil, adjacent to a successful ExxonMobil project in neighboring Guyana. This partnership between TotalEnergies, APA Corp., and Staatsolie represents a significant collaboration between international and local companies. As the project moves forward, there will be ongoing efforts to ensure responsible development and environmental sustainability, to maximize the long-term benefits for Suriname and its population.
