Embedded Files
October 10th, 2024 by Shangyou Nie, Editor, Well Read AAPG
(The FID for Block 58 in Suriname reflects TotalEnergies’ and APA Corp.'s strategic push into deepwater exploration, aiming to unlock substantial oil reserves in South America. While the focus is on oil, such large-scale investments can open the door to other resource extraction initiatives, including critical minerals. The advanced technologies used for deepwater oil exploration may be adaptable for broader applications, such as lithium and iodine extraction from geothermal or subsurface sources. Notably, this type of project helps build infrastructure that could eventually support the integration of oil production with critical mineral extraction, paving the way for more diversified resource development in the region. - Dr. Sakharov)
On 1 October, TotalEnergies and partner APA Corp. announced the Final Investment Decision on the GranMorgu oil project in deepwater Block 58 in Suriname. This will start the development and production phase for the companies’ discoveries in Suriname.
Why it matters:
Why it matters:
The project will be the first big step toward making Suriname an oil producing and exporting nation.
What they are saying:
What they are saying:
“The FID is a historical milestone in Suriname’s oil and gas industry. What seemed like a distant dream is becoming reality. This will be the largest investment ever in our country,” said Annand Jagesar, managing director of state company Staatsolie.
About the FID:
About the FID:
TotalEnergies (operator, 50 percent) and its equal partner APA Corp. (formerly Apache) announced their FID in Suriname, according to Staatsolie.
The $10.5 billion GranMorgu project will focus on oil development and have a production capacity of 220,000 barrels of oil per day.
First oil is expected in 2028, while associated gas will be injected for pressure maintenance.
GranMorgu, which translates to “new dawn” in the local language, is formerly known as the Sapakara South-Krabdagu project.
It will be produced from a floating production storage and offloading unit, which could also serve as the hub for future sub-sea tie-back projects.
Staatsolie has an option to own up to 20 percent of the project. The company has until June 2025 to decide how much equity it would like to claim.
About the discovery:
About the discovery:
The Maka Central-1 discovery is on trend with Stabroek Block in Guyana, where ExxonMobil and partners have made 12+ billion barrels.
The discovery well is located in 1,000 meters of water depth in Block 58, immediately east of the Suriname-Guyana maritime border.
APA Corp. and TotalEnergies found high-quality light oil and condensate (API 40–60) in a stacked pay in the Upper Cretaceous Campanian and Santonian reservoirs.
TotalEnergies and APA Corp. have subsequently made five discoveries in the block. The two largest discoveries are Sapakara South and Krabdagu, with a combined 750 million barrels of oil reserves.
About the TotalEnergies and APA Corp. partnership:
About the TotalEnergies and APA Corp. partnership:
In December 2019, Total farmed into 50 percent of Block 58 to join then operator Apache, as the exploratory well was being drilled.
In the farm-in agreement, APA Corp. was going to drill two more exploration/appraisal wells. Afterward, Total would take over the operatorship to prepare for the development and production phase.
Total paid $100 million for the farm-in and agreed to carry an undisclosed amount of APA Corp’s share of the development cost.
What to watch:
With the FID by TotalEnergies and APA Corp, Suriname is on its way to become the latest oil producing country in South America.
Will Staatsolie join the project with 20 percent equity? Or will another IOC try to join the project, taking some of Staatsolie’s 20 percent?
Will other IOCs—including ExxonMobil, Shell, and Hess—and NOCs such as Petronas and CNPC be able to make more technical and commercial progress from their ongoing exploration campaign?
Page updated
Google Sites
Report abuse