Suriname and Guyana Take First Step Towards Joint Gas Reserves Exploitation
Suriname and Guyana have taken the first step towards achieving the joint exploitation of gas reserves off the coast of the two neighboring Caribbean Community (CARICOM) countries.
Collaboration on Gas Reserves
“It won’t happen tomorrow, but it is important that we now have confirmation from both sides that we want to work together. It could take years before we have found a development concept,” Staatsolie director Annand Jagesar told the ‘de Ware Tijd’ newspaper.
Jagesar was in Guyana as part of a Suriname delegation that included the Foreign Affairs, International Business, and International Cooperation Minister, Albert Ramdin, and met with Guyana’s Vice President Bharrat Jagdeo.
Jagesar told the newspaper that the two countries will jointly examine a development concept to make the exploitation of certain gas condensate reservoirs feasible.
Key Reservoirs in Focus
This concerns the Makka and Kwaskwasi discoveries in Suriname, which are close to the border with Guyana, and the Haimara and Pluma discoveries in Guyana, which are also close to the border.
“The biggest asset of a collaboration is scale. By merging, the scale could be achieved. But many other issues must be investigated,” Jagesar said.
Next Steps
Ramdin said that the meeting in Guyana “took place in a charming and open atmosphere” and that both countries recognize the importance of cooperation in gas.
He said there are possibilities, and the two countries will tackle them together with Staatsolie, the state-owned oil company now engaged in exchanging information with the authorities in Guyana at a technical and business level and recording the joint potential.
“In any case, this will be a high priority in the coming two to three months, and this conversation is intended to agree at the government level that this must be part of the strategic cooperation in oil and gas between Suriname and Guyana.”
He said the technical details will be discussed in the coming weeks.
Other Developments
Immediately after Staatsolie, TotalEnergies, and Apache Corporation announced on 1 October that the final investment decision (FID) for the production of oil reserves in Block 58 had been taken, Jagdeo contacted the Surinamese government, requesting that discussions be held soon about jointly exploiting the gas reserves of the two neighboring countries.
Meanwhile, Staatsolie is moving towards a second FID in Block 52, where Malaysian Petronas has discovered recoverable oil reserves.
There are reports that Malaysian Petronas found an amount equal to more than 400 million barrels of oil there, allowing for a project utilizing 100,000 barrels daily.
Last week, Staatsolie began discussions with Petronas to get this project off the ground. Jagesar explained that they could announce the FID as early as 2027 and begin oil production in Block 52 by 2030.
Jagesar said that, with technical adjustments, Petronas could potentially use a floating production, storage, and offloading unit they already have for the intended project. This would allow production to start sooner.
Large quantities of natural gas have also been found in this block. Staatsolie and Petronas are also negotiating, aiming to get the first gas development as early as 2031.
Related
Conclusion:
The joint exploitation of gas reserves off the coast of Suriname and Guyana is a significant step towards strengthening the economic ties between the two countries. With the potential to unlock large-scale production, the collaboration could benefit both nations in the long run.
FAQs:
- What is the purpose of the joint gas reserves exploitation?
The purpose is to achieve a more significant scale of production by merging the resources of both countries. - What are the key reservoirs in focus?
The Makka and Kwaskwasi discoveries in Suriname and the Haimara and Pluma discoveries in Guyana are the key reservoirs being considered for joint exploitation. - What is the timeline for the project?
The project may take years to come to fruition, with the first signs of production potentially seen as early as 2031.
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