Suriname's Block 52 could become commercial for oil in 18 months, Staatsolie says

The managing director of Staatsolie, the state-owned oil and gas company in Malaysia, said that Petronas was exploring for oil in offshore 'Block 52' in Suriname. This area had been declared "commercially viable" for the development of a natural gas field late last year after large discoveries were made in the region. Annand Jagesar said in a telephone interview that they hoped to declare commerciality for oil in the next 18 months.

If partners?Petronas & Staatsolie take a positive investment decision this year, the Sloanea discovery is expected to lead a major development?including floating LNG facilities. The first gas will be produced in 2030.

Jagesar stated that if crude oil is also commercially viable and the country can export it, then the development of offshore gas and oil could be paralleled.

Suriname will begin offshore crude oil production by 2028, through the $10.5 billion project Gran Morgu? operated by TotalEnergies.

Staatsolie offers an open-door licensing round that covers over 70,000 sq km (27,027 sq miles) in five offshore sectors. The licensing round allows companies to submit work programs, and to secure production-sharing agreements or joint study arrangements to improve the seismic data available.

Jagesar stated that Suriname hopes to attract 'three to four investors who are interested in working in these areas' as part of this offer. The offer will be open for two years. (Reporting and editing by Nia William and Stephen Coates; Reporting by Marianna Pararaga)

(source: Reuters)