Suriname's $26 Billion Oil Bet Is Finally Paying Off

Suriname's $26 Billion Oil Bet Is Finally Paying Off

Matthew Smith

Sun, August 2, 2026 at 12:00 AM GMT+3 6 min read

Middle East turmoil, centered on the U.S. war with Iran, is playing havoc with world energy markets. An ongoing dispute over access to the Strait of Hormuz, through which a fifth of world oil and natural gas supply is shipped, is causing prices to surge. This is a boon for South America's oil industry, particularly Suriname's emerging petroleum boom, which was delayed by conflicting drilling results and seismic data. The former Dutch colony is on the cusp of becoming South America's next major oil-producing nation.

Since 2019, Suriname's government in the capital Paramaribo has hungrily eyed Guyana's booming petroleum sector, which delivered a massive economic windfall for the former British colony. Five major oil discoveries in offshore Block 58, which started in 2020 with the Maka Central-1 exploration well, confirmed the presence of commercially exploitable hydrocarbons in Suriname's portion of the offshore Guyana-Suriname Basin.

After a series of delays, beginning in 2022, due to mismatched drilling results and seismic data along with a high gas-to-oil ratio, TotalEnergies, the operator of Block 58, approved a final investment decision (FID). TotalEnergies, which holds a 50% working interest in offshore Block 58, and 50% partner APA Corporation approved the development of the deepwater GranMorgu project. This changed the project's ownership structure. Forty percent was retained by the operator TotalEnergies with another 40% retained by APA, and the remainder granted to Staatsolie.

The state-controlled energy company's acquisition was in accordance with Staatsolie's rights set out in the production-sharing contract (PSC) for Block 52. The company used a $1.6 billion loan from a banking consortium and a March 2025 bond issue to finance the acquisition. Staatsolie's share of GranMorgu will multiply the earnings delivered to Paramaribo, which has been battling an economic crisis since 2021. Indeed, the situation was so severe that rioting engulfed parts of the capital and parliament was stormed by protestors in 2023.

GranMorgu, which will come online in 2028, is a game changer for an economically challenged Suriname. The project's floating production, storage and offloading unit (FPSO) vessel, on completion, will have capacity of 220,000 barrels per day.

GranMorgu Block 58 Offshore Suriname

Source: TotalEnergies.

The FPSO is targeting the Sapakara and Krabdagu discoveries, which contain estimated recoverable resources of 760 million barrels of crude oil. GranMorgu will deliver a massive economic windfall for Suriname, with it expected to generate up to $26 billion in fiscal income.

TotalEnergies is implementing initiatives to extend the FPSO's operational life by ensuring it can connect to satellite fields to lift oil once the Sapakara and Krabdagu reservoirs are drained. The GranMorgu project is designed to have a low carbon impact with the FPSO to be all-electric FPSO with energy optimization and strict emission monitoring systems. As a result, TotalEnergies estimates less than 16 kilograms of carbon will be emitted per barrel of crude oil produced, less than the global upstream average of 17 to 18 kilograms per barrel.

Although the carbon to be discharged from GranMorgu is higher than neighboring Brazil, where offshore pre-salt oil production emits around 10 to 12 kilograms and Guyana where it is as low as nine kilograms. Petroleum lifted in offshore Suriname is believed to possess similar quantities to Guyana, with it light and sweet. Indeed, the petroleum encountered at the Sapakara South 1 well has an API gravity of 34 degrees, while at the Krabdagu well the crude oil collected during a 2022 flow test had an API gravity of 35 to 37 degrees.

APA's media releases and reports indicate the petroleum is sweet with a low sulfur content of less than 1% along with few impurities and contaminants. Those characteristics make that oil less complex and cheaper to process into high-grade, low-carbon-emission fuels. Guyana's crude oil, which has similar attributes, is gaining considerable interest from foreign drillers and refiners, which is driving up demand for the country's petroleum cargoes. Paramaribo anticipates GranMorgu will experience similar success.

Suriname's oil boom is not only about Block 58 and GranMorgu. Offshore Block 52 demonstrates considerable hydrocarbon potential. The operator, Malaysia's national oil company Petronas, holds an 80% working interest in the acreage. Staatsolie, in accordance with its contractual rights, acquired 20% of Block 52. In November 2025, the drillers jointly achieved a major milestone through the Declaration of Commerciality (DOC) for the Sloanea field.

This field is centered on the Sloanea-1 discovery, made by Petronas in 2020 when supermajor ExxonMobil was a 50% partner in Block 52. The energy supermajor divested its interest in the acreage during November 2024 as it realigned its South American operations to focus on the prolific Stabroek Block in neighboring Guyana. This saw Exxon assign its 50% share in Block 52 to Petronas. Staatsolie then acquired a 20% share shortly thereafter signing a PSC with Petronas.

Malaysia's national oil company is enjoying considerable drilling success in offshore Suriname. At the end of June 2026, Petronas announced it had made eight discoveries in Block 52. These were all made in a zone drillers are calling the Golden Lane, which is believed to extend from the abundant petroleum fairway identified in Guyana's offshore Stabroek Block. Petronas' most recent discoveries occurred at the Caiman-1 and Swartzia Aspasia Complex-1 (SAC-1) wildcat wells. Petronas also successfully completed the Roystonea-2 appraisal well in Block 52.

These results confirm the viability of Block 52 and its tremendous oil potential, with the offshore petroleum acreage destined to contain Suriname's next major hydrocarbon field. This is underscored by Petronas' Chief Operating Officer and Executive Vice President & Chief Executive Officer of Upstream, Mohd Jukris Abdul Wahab, stating a final investment decision for Block 52 is being planned before the end of 2026. There is every indication that Suriname is on track to become a major oil producer and exporter, which will deliver a much-needed economic windfall.

By Matthew Smith for Oilprice.com

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