TotalEnergies secures 25% stake in Suriname’s Block 53 to expand offshore energy strategy

Why is TotalEnergies acquiring a 25% stake in Suriname’s Block 53 from Moeve in 2025?

TotalEnergies SE (EPA:TTE) has expanded its upstream energy portfolio in South America by signing a strategic acquisition deal for a 25% participating interest in Block 53, located offshore Suriname. The stake was previously held by Moeve, formerly known as CEPSA. Following the transaction, the ownership of Block 53 is now split between APA Corporation (45%, operator), Malaysia’s Petronas (30%), and TotalEnergies (25%).

The asset lies just east of Block 58, a prolific area where TotalEnergies and partners have already sanctioned the Final Investment Decision (FID) for the GranMorgu development project as of October 2024. Block 53 notably includes the Baja-1 discovery, positioned close to the border of Block 58, offering strategic geological and infrastructure synergies with the GranMorgu initiative.

This acquisition underscores TotalEnergies’ long-term commitment to strengthening its upstream footprint in low-emission, high-return oil and gas projects, particularly in underexplored but high-potential regions like offshore Suriname.

How does Suriname’s Block 53 acquisition support TotalEnergies’ GranMorgu development plan?

Block 53’s geological proximity to the GranMorgu development is a critical enabler for operational and logistical synergies. According to TotalEnergies’ Senior Vice President for the Americas in Exploration & Production, Javier Rielo, the transaction will allow the European oil and gas conglomerate to profitably develop new reserves and extend production longevity using existing infrastructure.

The GranMorgu project—officially launched in October 2024 following a multi-stakeholder FID—represents a cornerstone of TotalEnergies’ low-emission portfolio in South America. The offshore site is being developed in collaboration with APA Corporation and Staatsolie, Suriname’s state-owned oil firm, which holds a 20% back-in right. Baja-1, located within Block 53, will likely serve as an early-stage resource that can be integrated into GranMorgu’s production system, allowing faster monetization and lower marginal cost per barrel.

This approach aligns with the multinational energy producer’s overarching transition strategy, which aims to optimize existing offshore developments while minimizing carbon footprint and capital expenditure.

What institutional and investor sentiment surrounds TotalEnergies’ growing stake in offshore Suriname?

Institutional investors and energy market observers view the Suriname offshore basin as one of the last remaining frontier oil plays with material untapped potential. APA Corporation, which operates both Block 58 and Block 53, has drilled several promising wells in the region over the past five years, leading to a notable uptick in investor confidence regarding Suriname’s basin-wide prospectivity.

TotalEnergies’ decision to increase its exposure in this geography is seen by market participants as a calculated move to secure long-term, low-breakeven assets in politically stable jurisdictions. Although Suriname’s regulatory framework is still maturing, the presence of global players like TotalEnergies, APA, and Petronas offers both operational expertise and de-risking capacity.

Analysts generally regard this acquisition as a bullish signal on the viability of integrating satellite discoveries like Baja-1 into the larger GranMorgu processing and export framework. The strategic move is interpreted as a means to scale economies, accelerate time-to-market, and ultimately improve net present value (NPV) of the offshore Suriname portfolio.

What historical context positions offshore Suriname as a strategic region for TotalEnergies?

TotalEnergies first entered Suriname’s offshore sector through Block 58, which became a key exploration success story in the early 2020s. Initial discoveries such as Maka Central, Sapakara West, and Kwaskwasi laid the groundwork for commercial-scale development. By 2024, with multiple appraisal wells and positive flow tests completed, the GranMorgu development was formally approved.

The Baja-1 well in Block 53, drilled by APA in 2020, added further evidence of hydrocarbon richness in the region. The prospect remained underexploited until this transaction enabled TotalEnergies to assume direct ownership and leverage its experience and scale from Block 58.

Historically, Suriname’s offshore sector has benefited from being geologically contiguous with Guyana’s Stabroek Block, where ExxonMobil and partners have developed a globally significant oil basin. The success in Guyana has inspired parallel optimism in Suriname, particularly given the shared geologic formations and similar exploration outcomes.

How does TotalEnergies plan to integrate Block 53 with its broader South American energy operations?

As a global integrated energy major, TotalEnergies is pursuing a dual-track strategy in South America: monetizing legacy oil and gas projects with strong economics, while simultaneously expanding its footprint in renewable energy and low-carbon fuels. In this context, Block 53 complements the firm’s upstream oil ambitions, particularly in low-cost, high-output regions like Suriname and Brazil.

The integration plan is likely to include subsea tiebacks from Baja-1 into GranMorgu’s processing hub, with shared logistics, transport, and personnel infrastructure reducing operating costs and emissions. The use of floating production storage and offloading (FPSO) vessels and other modular infrastructure will help in maintaining production flexibility and scalability.

Future development timelines will depend on ongoing appraisal and resource estimation for Baja-1, but early sentiment suggests that if recoverable reserves are confirmed, TotalEnergies may fast-track development under its hub-and-spoke model.

This structure is already being implemented in Block 58 and may serve as a template for maximizing capital efficiency across the broader offshore Suriname basin.

What is the forward-looking investor outlook for TotalEnergies in the Suriname offshore oil sector?

Looking ahead, analysts anticipate further exploration and appraisal drilling in both Block 58 and Block 53, with TotalEnergies’ strategic position making it well-placed to drive basin-wide consolidation. The acquisition from Moeve is expected to yield rapid development synergies, especially if additional discoveries near Baja-1 materialize.

The GranMorgu project, with first oil potentially scheduled for late 2027 or early 2028, is expected to be a catalyst for regional oil output growth. The project fits well into TotalEnergies’ goal of maintaining high-margin production during the transition to low-carbon energy systems.

Institutional sentiment remains positive, particularly given TotalEnergies’ record of capital discipline, emissions management, and ability to execute complex offshore developments. Suriname’s government, through Staatsolie, also remains supportive of international operators, adding a layer of regulatory stability that investors find reassuring.

Overall, the acquisition of a 25% stake in Block 53 is not only a geographic expansion but a strategic maneuver that strengthens TotalEnergies’ hand in one of the world’s most promising offshore basins, signaling a continued commitment to resilient upstream growth.