The Suriname-Guyana basin continues to be a focal point for hydrocarbon exploration and development, as evidenced by CGX Energy’s recent discovery at the Corentyne block, in line with Suriname’s Block 58. Indeed as frontier E&P remains at a comparatively low ebb, this represents one of few global hotspots, with an estimated 16bn barrels of recoverable resources discovered to date.
The Government of Suriname, in partnership with the IMF, has committed to ‘create sustainable growth and development of the Suriname economy with a package of management measures’. This provides a platform for Suriname energy investment and growth across the economy, beyond oil & gas production.
Continued commitments to the Suriname deep-water province have delivered commercial opportunities, notably block 58 for TotalEnergies and its partners. This has led to plans for further activity in the coming months.
While the deep-water offshore province has garnered all the publicity, the national oil company Staatsolie successfully went to market with the inshore shallow water licenses (SHO) bid round in 2020-21. June 25th 2021, saw the award of blocks 6 & 8 to TotalEnergies and partners Qatar Petroleum and Staatsolie.
Supply Chain Opportunities
Suriname is attracting interest from investors representing a huge prize for companies operating across the energy supply chain.
In addition to services directly related to E&P such as drilling, the opportunities cover a broad range of activities including energy technology, logistics and port development, facilities management and much more.
However, while the potential for international players is significant, fierce debate around local content and related issues adds complexity to potential involvement in the region.
Energy Transition in Suriname
Suriname belongs to a small club of carbon-negative nations, absorbing more carbon through its dense rainforests than it emits. Nonetheless, post-COP26, and in preparation for the development of its hydrocarbons sector, the country is taking bold steps to secure its energy transition credentials.
For example, the Government of Suriname has committed to ‘maintain the share of electricity from renewable sources above 30% by 2030’. With this in mind the government, working with Staatsolie Power Company, have implemented a number of initiatives to kickstart the diversification of power generation, including solar power, energy storage and grid digitalisation.
These present further investment potential for businesses looking to contribute to the long-term development of the Suriname and Guyana energy sectors. Additionally, it has been noted that oil & gas production from the Suriname-Guyana basin has a lower carbon footprint than many other hydrocarbon sources. A well-developed energy technology sector will enable the country to maximise this potential.
The Suriname Playbook
ABIS Energy and Energy Voice launched the Guyana Playbook in December 2020. Almost a calendar year later ABIS Energy, in collaboration with Energy Voice and Oil Now, is proud to launch a sister publication, the Suriname Playbook.
The Suriname Playbook is the definitive guide for companies and investors looking to establish or increase their involvement in this vibrant region. The report brings together key insights into the political, economic and legal landscapes in one place, while providing a comprehensive overview of the opportunities and risks at play.
The Playbook features contributions from regional insiders, including Staatsolie, the Chamber of Commerce, lawyers Naarendorp Advocaten (including explanation of the Civil Law System in place in Suriname, which may be unfamiliar to those hailing from Common Law jurisdictions such as the UK, US and Canada), FinaBank – the first private bank in Suriname – and representatives from across the local supply chain.
ABIS Energy is a Global Energy Partner, specialising in energy economics, research & analysis, corporate investment, transition policy, strategy and delivery. It offers unrivalled insight and access from a network encompassing sovereign governments, IOCs, NOCs, FTSE 100 companies, energy investors, management consultants and the global supply chain.