Oil minister: Suriname and Guyana will form team to explore joint projects for gas exploration

Suriname’s oil minister said that Suriname and Guyana will 'create' a technical team to investigate the development of natural gas?production between the two South American nations.

The team could be set up next month and would represent a significant step forward for Suriname, Guyana and other countries that have been discussing the possibility of collaborating across borders on natural gas exploration. The first gas project for both countries would be any future project.

Patrick Brunings said that experts involved in the project would need to 'consider a litany factors, including the total amount of natural gas, infrastructure requirements in both countries, and how the gas is used.

He said that combining the gas resources of different countries could make them more attractive to investors.

Suriname and Guyana both have volumes that are not yet interesting. Brunings stated that combining the volumes could make them more appealing.

The Minister of Natural Resources for Guyana did not respond immediately to a comment request.

Initial, oil companies won't be part of the joint technical team. However, they may join in the future.

Brunings stated, "We want to first come together to look at the opportunities country-to-country."

He added that Suriname should discuss with TotalEnergies and APA the idea of developing a gas project with Guyana. Suriname is a key partner in oil projects with the three energy companies.

Brunings stated that Exxon Mobil, the operator of the oil consortium currently producing all of Guyana’s output, will also have to join in.

Exxon Upstream president Dan Ammann stated in a Tuesday interview that the company has not discussed collaborating with Suriname on gas.

Brunings acknowledged that companies will likely focus on developing oil first because it's more profitable. Natural gas projects must also make financial sense. Brunings stated that the technical team would work towards signing a memorandum or understanding to explore joint projects. Reporting by Kemol and Sheila Dang from Georgetown, Guyana. Editing by Nathan Crooks & Lincoln Feast

(source: Reuters)