Suriname’s Staatsolie seeks $1.5 billion in financing to join the Gran Morgu project led by TotalEnergies, a significant offshore oil initiative. The development at Block 58 could crucially position Suriname as an emerging oil producer by 2028. With projected costs and revenues, Staatsolie aims to expand its operations and secure further investments in future projects, potentially including natural gas development with Petronas.
Staatsolie, Suriname’s state oil company, aims to secure $1.5 billion in bank financing to join the Gran Morgu energy project, a significant offshore initiative directed by TotalEnergies. This project marks Suriname’s entry into major offshore oil and gas production, expected to start extracting oil by 2028, positioning it as a competitor to Guyana.
The Gran Morgu project, located at Block 58, holds enormous potential with estimated costs upwards of $12.2 billion. Staatsolie intends to hold a 20% stake, necessitating an investment of $2.4 billion. Currently, the project’s development is 10% complete, as initial contracts worth approximately $7 billion have been secured.
Staatsolie’s managing director, Annand Jagesar, indicated that the company is engaging with global banks to arrange financing. He noted that these banks are eager to participate, although specific names of potential financiers were not disclosed. So far, Staatsolie has contributed $175 million and is poised for additional capital outlays this year.
In its growth strategy, Staatsolie anticipates its revenues will increase significantly, projecting to reach $1.77 billion by 2029. A critical hurdle for the company is timely fundraising, particularly for substantial offshore projects that require upfront capital.
The company also plans to enter the natural gas sector with a potential partnership in a project operated by Petronas in Block 52, which could involve costs around $10 billion, with a decision expected next year. Securing a 20% share in this development would necessitate an additional $2 billion.
However, the revenues from the Gran Morgu project could lead to annual earnings of approximately $700 million at peak production, which analysts suggest could ease future financial requirements for Staatsolie as it navigates its expansion ambitions over the upcoming years.
Staatsolie is strategically positioning itself to tap into Suriname’s offshore potential by securing financing for the Gran Morgu project. Their success in raising $1.5 billion is critical for participating alongside TotalEnergies. This project not only seeks to boost Staatsolie’s revenue but also lays the groundwork for future natural gas ventures, enhancing the company’s growth trajectory significantly.
Original Source: www.oedigital.com
