TotalEnergies has officially approved the $10.5 billion GranMorgu oil project in Suriname, expected to produce 220,000 barrels of oil per day and create over 6,000 jobs by 2028.
TotalEnergies Approves Major Oil Development
TotalEnergies has made a significant move in the energy sector by announcing the final investment decision (FID) for the GranMorgu oil project. This project will be developed on offshore Block 58 in Suriname. The announcement came during a meeting in Paramaribo, where Patrick Pouyanné, the CEO of TotalEnergies, met with Suriname’s President Chandrikapersad Santokhi and Staatsolie CEO Annand Jagesar.
Key Project Details
The GranMorgu project, named after Sranan Tongo words meaning “new dawn” and “Goliath grouper,” aims to tap into the Sapakara and Krabdagu oil discoveries. The project boasts estimated recoverable reserves exceeding 750 million barrels of oil. Positioned 150 kilometers off the coast of Suriname, GranMorgu is set to produce 220,000 barrels of oil per day through a Floating Production Storage and Offloading (FPSO) unit, with first oil anticipated in 2028.
TotalEnergies operates Block 58 with a 50% stake, collaborating with APA Corporation. The total investment for this project is estimated at $10.5 billion. Additionally, Staatsolie plans to exercise its option to acquire up to a 20% stake in the development by June 2025.
Commitment to Sustainability
One of the standout features of the GranMorgu FPSO unit is its commitment to minimizing greenhouse gas emissions. The design incorporates advanced technologies, including an all-electric configuration, zero routine flaring, and reinjection of associated gas into reservoirs. Furthermore, it includes a Waste Heat Recovery Unit, optimized water cooling, and permanent methane detection systems.
Economic Impact on Suriname
The GranMorgu project is not just about oil; it is expected to significantly boost Suriname’s economy. The initiative will bring in over $1 billion in local investments and create more than 6,000 jobs. The capital city, Paramaribo, will serve as the main hub for administrative and logistical support, with local companies playing crucial roles in logistics and well services.
During the FID announcement, TotalEnergies and APA signed a Memorandum of Understanding with Suriname’s Health Ministry. This agreement aims to support the rehabilitation of two hospitals in Paramaribo, further demonstrating the project’s commitment to the local community.
Statements from Leaders
“This landmark project marks the first offshore development in Suriname and is a major milestone for our deep offshore innovation,” said Patrick Pouyanné, CEO of TotalEnergies. He expressed excitement about working alongside Staatsolie to deliver a transformative project for Suriname’s economy.
President Santokhi praised the decision as a historic moment for the country. He emphasized the investment and revenue opportunities the project will generate. Staatsolie CEO Annand Jagesar echoed this sentiment, stating that the FID represents the largest investment in Suriname’s history. He believes the project will have a lasting positive impact on the nation’s economy and living standards.
Future Outlook
As TotalEnergies embarks on this ambitious venture, it sets a precedent for future oil projects in Suriname. The GranMorgu development is expected to attract more international investments and enhance the nation’s position in the global energy landscape. With its focus on sustainability and local development, this project could serve as a model for similar initiatives in the region.
