Initial drilling successes in Suriname have sparked optimism in the country and among large oil companies, but a number of serious speedbumps have emerged in 2022
6.5 billion barrels of recoverable oil resources, making it an astounding and highly profitable asset to develop.The optimism surrounding Block 58 was supported by additional oil discoveries being made on other blocks in offshore Suriname. Malaysia’s national oil company Petronas along with 50% partner Exxon accounted during December 2020 the discovery of oil with the Sloanea-1 exploration well on Block 52.
Nevertheless, it has not been all plain sailing with recent drilling results indicating that Block 58 may not be as easy to exploit as initially believed. Disappointingly, since the successful flow test of the Sapakara South well during November 2021, three dry holes have been drilled on Block 58.
and abandoned. That came on the back of the failed Dikkop-1 well where water-bearing sandstone in the targeted region saw it plugged and abandoned. There was also the November 2021 sub-commercial black oil discovery made by the BonBoni exploration well.It was initially expected that Apache and TotalEnergies would make a final investment decision concerning Block 58 before the end of 2022, which has not occurred.
It is speculated that Suriname’s national oil company Staatsolie, which has the right to acquire a 20% interest in Block 58 when the FID is made, lacks adequate resources to execute the full amount, meaning it will likely seek a smaller stake. For the reasons discussed, Paramaribo will not enjoy the tremendous economic windfall as soon as initially expected.
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