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2 minutes read

Suriname Oil Project Moves Forward with FPSO Build

Suriname’s first offshore oil project is gaining momentum as France’s TotalEnergies and APA Corporation move forward with their $12.2 billion GranMorgu development in Block 58. Located around 150 kilometers off Suriname’s coast, the project is now about 13% complete following a final investment decision (FID).

A key component, the floating production, storage, and offloading (FPSO) vessel, is being built by SBM Offshore and Technip Energies, with construction progress reaching 27%, according to Staatsolie, Suriname’s national oil company.

The FPSO, designed to process up to 220,000 barrels per day, will support subsea installations, pipelines, and production wells—positioning Suriname to enter the ranks of offshore oil producers by 2028. The vessel is modeled on FPSOs used in similar deepwater environments like Guyana and will be capable of connecting to additional satellite fields to extend its output.

Staatsolie, aiming to participate in up to 20% of the project, has already raised $515.8 million via a bond issuance and is finalizing negotiations with international and regional banks to secure additional funding—estimated at $2.4 billion in total.

GranMorgu, meaning both “great morning” and “goliath grouper” in Suriname’s local Sranan Tongo language, symbolizes strength, longevity, and a new era for the country. The project aligns with TotalEnergies’ strategy to develop low-emission, cost-efficient oil and gas operations. Emissions intensity for GranMorgu is projected to stay under 16 kg CO₂e per barrel of oil equivalent, thanks to innovative technologies like all-electric FPSO systems, zero routine flaring, gas reinjection, waste heat recovery, and methane monitoring via sensor networks.

Other major contracts awarded include a $1 billion deal to TechnipFMC and a $1.9 billion award to Saipem. The total investment reflects Suriname’s commitment to becoming a significant player in the oil and gas sector.

Meanwhile, exploration efforts are ramping up across other offshore blocks. Malaysia’s Petronas is progressing with pre-development for Block 52, where a commercial gas field could be greenlit by 2026. Petronas confirmed a new discovery at Fusaea-1 in May 2024 and is evaluating its potential alongside previous finds.

In parallel, Chinese energy giant PetroChina signed production sharing contracts in 2024 for offshore Blocks 14 and 15, while Staatsolie’s Paradise Oil Company holds a 30% interest in both. Drilling of five new exploration wells is scheduled for 2025, starting with Macaw-1 in Block 64.

As operations expand from Suriname beginning in 2026, Staatsolie emphasizes the economic benefits—from local job creation to increased demand for goods and services—marking a new chapter in the country’s energy story.

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