France’s TotalEnergies and U.S.-based APA Corporation announced plans to invest $10 billion to extract oil off the coast of Suriname, marking a historic investment for the South American country. The GranMorgu project, located in offshore waters believed to contain approximately 700 million barrels of oil, is expected to begin production by mid-2028, with an output of 220,000 barrels per day.
TotalEnergies CEO Patrick Pouyanné traveled to Suriname to make the announcement, calling it the nation’s largest investment to date. Suriname’s President Chan Santokhi hailed the deal as “a historic day for Suriname” and described it as a turning point that will shape the country’s future.
The project is adjacent to a successful ExxonMobil venture in neighboring Guyana, and TotalEnergies will collaborate with APA Corp, a subsidiary of Texas-based Apache Corporation, as well as Staatsolie, Suriname’s state-owned oil company. Staatsolie, entitled to a 20% stake under the production sharing contract, plans to issue bonds in 2025 to fund its participation, following an initial $175 million payment.
President Santokhi emphasized that revenue from the project will be used to improve the standard of living in Suriname, where the poverty rate stands at 18%. The country is also undergoing a $688 million IMF restructuring program aimed at managing its $3.5 billion debt, which has led to austerity measures and sparked protests.
Annand Jagesar, CEO of Staatsolie, expressed optimism about the transformative potential of the oil deal, stating, “Suriname will never be the same.” However, he cautioned against the risks of poor governance and over-reliance on oil, citing Venezuela’s struggles despite its vast oil reserves.
TotalEnergies has pledged to develop the project responsibly, utilizing advanced technologies to reduce greenhouse gas emissions, reflecting a commitment to sustainable energy practices.
