Suriname's Block 52 Could Become Commercial in 18 Months

Source: Staatsolie

Malaysia's oil and gas producer Petronas is exploring for oil at offshore Block 52 in Suriname, which was declared commercially viable for the development of natural gas late last year following large discoveries in the area, the managing director of state company Staatsolie said on Wednesday.

"We hope also to somewhere in the coming 18 months to get to a declaration of commerciality on oil as well," Annand Jagesar told Reuters in a phone interview, referring to Block 52.

The Sloanea gas discovery in that block is expected to lead to a large development including floating LNG facilities if partners Petronas and Staatsolie make a positive final investment decision later this year. The first gas would be produced by 2030.

If crude is also found to be commercially viable, the country could see the parallel development of offshore oil and gas for export, Jagesar said.

Suriname is on track to inaugurate offshore crude production in 2028 through the $10.5 billion Gran Morgu project operated by TotalEnergies.

To encourage more exploration, Staatsolie is offering an open-door licensing round covering over 70,000 square kilometers (27,027 square miles) across five offshore sectors. It allows companies to propose work programs and secure production-sharing contracts or joint study agreements to improve seismic data available.

Suriname expects to secure three to four investors interested in working in those areas as part of the offer, which will remain open for at least two years, Jagesar said.

(Reuters - Reporting by Marianna Parraga; Editing by Nia Williams and Stephen Coates)