TotalEnergies approves $10.5bn GranMorgu oil project in Suriname: A new dawn for the country’s energy sector

TotalEnergies, in partnership with APA Corporation and Staatsolie, has officially approved the Final Investment Decision (FID) for the $10.5 billion GranMorgu oil development offshore Suriname. This transformative project will develop the Sapakara South and Krabdagu oil discoveries located in Block 58, 150 kilometers off Suriname’s coast. The GranMorgu venture is poised to be a game-changer, not only for the country’s burgeoning oil sector but also for the broader economy, with first oil expected in 2028.

According to TotalEnergies, the development is estimated to yield over 750 million barrels of recoverable oil reserves. Central to the project’s design is a Floating Production Storage and Offloading (FPSO) unit that can process up to 220,000 barrels per day. This FPSO, which replicates a proven model, incorporates cutting-edge technology to minimize environmental impacts. The FPSO will operate with an all-electric configuration, zero routine flaring, and reinjection of gas into the reservoirs, reducing carbon emissions below 16 kg CO2e/boe.

Staatsolie, Suriname’s national oil company, has declared its intention to exercise its option to acquire up to a 20% stake in the project by June 2025. This investment positions Staatsolie as a key player in the development, ensuring that Suriname will directly benefit from the project’s revenue streams. CEO Annand Jagesar highlighted the importance of this project as the largest investment in the country’s history, calling it a significant moment for Suriname’s energy future.

Economic and Environmental Impact

GranMorgu’s development promises to bring extensive economic benefits to Suriname, contributing over $1 billion in local investments and creating thousands of jobs. The capital city of Paramaribo will become a hub of activity, providing administrative and logistical support for the project. President Chandrikapersad Santokhi praised the FID decision as a monumental moment for the nation, ushering in new opportunities for growth and global partnerships.

Furthermore, the project underscores TotalEnergies’ commitment to sustainability, with the FPSO incorporating various environmental safeguards. The unit’s design includes a Waste Heat Recovery Unit and permanent methane detection systems, all part of a strategy to reduce the project’s environmental footprint​.

Suriname’s First Offshore Development

This groundbreaking project marks Suriname’s first foray into offshore oil production, a crucial step for a country with five major oil discoveries since 2019. GranMorgu is named after the Goliath Grouper, a majestic fish found in Suriname’s coastal waters, symbolizing the scale and significance of this development. The project is expected to have a lifespan of at least 20-25 years, with potential future expansions through tie-back opportunities​.

In addition to economic benefits, the project is expected to improve infrastructure and living standards across Suriname. Staatsolie will oversee the local aspects of the project, ensuring that revenues are reinvested in a transparent manner to benefit the Surinamese population for generations to come. As Annand Jagesar noted, this project represents not only economic growth but also the potential to shape Suriname’s future through good governance and sustainable development.