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3 minutes read

TotalEnergies Announces Final Investment Decision for GranMorgu Development in Block 58

Patrick Pouyanné, Chairman and CEO of TotalEnergies, met with His Excellency Chandrikapersad Santokhi, President of Suriname, and Annand Jagesar, CEO of Staatsolie, in Paramaribo to officially announce the Final Investment Decision (FID) for the “GranMorgu” offshore development project located in Block 58. The name “GranMorgu,” meaning both “new dawn” and “Goliath grouper” in the local language Sranan Tongo, reflects the project’s transformative potential.

A Landmark Project in a Prolific Oil Basin

The GranMorgu project will develop two significant oil discoveries, Sapakara and Krabdagu, which completed a successful exploration and appraisal campaign in 2023. Located 150 km off the coast of Suriname, the fields hold estimated recoverable reserves exceeding 750 million barrels of oil. The project will be supported by a state-of-the-art Floating Production Storage and Offloading (FPSO) unit, designed to produce 220,000 barrels of oil per day. The FPSO design replicates a proven and efficient model, and TotalEnergies expects first oil by 2028, with a total investment of approximately $10.5 billion. The unit is also designed to accommodate future tie-back opportunities, which could further extend its production capacity.

TotalEnergies holds a 50% interest in Block 58, with APA Corporation owning the other 50%. Staatsolie, Suriname’s national oil company, has expressed its intention to exercise its option to take up to a 20% interest in the project, contributing from the FID and finalizing its stake before June 2025.

Leveraging Advanced Technology for Low Emissions

The GranMorgu project will integrate cutting-edge technology to minimize its carbon footprint, targeting a greenhouse gas (GHG) emissions intensity of below 16 kg CO2e per barrel of oil equivalent (boe). Key environmental features include:

  • An all-electric FPSO configuration, eliminating routine flaring and reinjecting associated gas into the reservoirs.
  • Optimized power usage through a Waste Heat Recovery Unit and enhanced water cooling for improved efficiency.
  • A permanent methane detection and monitoring system using a network of sensors to ensure minimal emissions.

These measures align with TotalEnergies’ commitment to developing low-emission, sustainable oil projects that meet global energy demands while minimizing environmental impact.

Significant Economic Impact for Suriname

The GranMorgu project is set to generate substantial economic benefits for Suriname. The investment will exceed $1 billion in local content, creating over 6,000 jobs—2,000 directly and 4,000 indirectly—during construction and operational phases. Local businesses will be heavily involved in logistics, well services, and the installation of subsea systems and the FPSO, ensuring that Suriname’s economy reaps long-term benefits from the project.

Paramaribo will serve as the primary hub for administrative and logistical activities, further embedding the project into the fabric of Suriname’s economy. In addition to job creation and local investment, TotalEnergies and APA have signed a Memorandum of Understanding (MoU) with the Ministry of Health to support the rehabilitation of two mother and child hospitals in Paramaribo, showcasing the project’s broader commitment to the local community.

Leadership Comments

Patrick Pouyanné, Chairman and CEO of TotalEnergies, expressed enthusiasm for the project’s potential, stating, “I am very pleased to launch the GranMorgu project alongside our partners Staatsolie and APA. This landmark project marks the first offshore development in Suriname and demonstrates our commitment to accelerating time-to-market and developing low-cost, low-emission oil projects. We look forward to continued collaboration with Staatsolie to deliver a transformative project for Suriname’s economy.”

President Chandrikapersad Santokhi welcomed the announcement, calling it a historic moment for Suriname. “This final investment decision is a milestone occasion, creating significant opportunities and revenue prospects for Suriname, and attracting investors worldwide. Suriname is committed to a strong partnership with TotalEnergies, ensuring that the project complies with environmental standards.”

Annand Jagesar, CEO of Staatsolie, highlighted the project’s potential to elevate living standards in Suriname. “The FID is a historic moment in our oil and gas industry. This project will yield significant income for Suriname, and we are confident that the measures taken will ensure world-class operational and environmental performance.”

With the GranMorgu project, Suriname is poised to become a significant player in the global oil and gas industry, unlocking economic growth while adhering to high environmental standards.

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