🗳️ Central Hoofdstembureau announces official election results

Happy Monday!

This week the Central Hoofdstembureau announces official election results, exchange rate in steep rise, and Petronas accelerates exploration in Block 52.

CHS announces official election results: seat distribution unchanged

• The Centrale Hoofdstembureau (CHS) officially announced the election results, confirming no changes in the National Assembly seat distribution: NDP 18, VHP 17, NPS and ABOP 6 each, PL 2, BEP 1, and A20 1.

• Elections for both the National Assembly and local (Ressortraden and Districtsraden) councils were officially finalized.

• Steve Reyme (A20), Ingrid Bouterse-Waldring (NDP), and Poetini Atompai (NPS) were elected outside their party's list order through preferential votes.

• CHS chair Lilawatie Punwasi-Raghoebir stated that, while there was no fraud, many administrative mistakes occurred at polling stations.

• She emphasized the need for reforms in the relationship and responsibilities between the CHS and main polling stations to prevent future errors.

• The final legal validation of the elections is pending an assessment by the Independent Electoral Office.

• VHP’s previous objections were dismissed by the Paramaribo polling station, and the CHS confirmed the results without evidence of electoral fraud.

• In the local elections, the NDP remained the dominant party with 380 representatives, followed by VHP (271), ABOP (147), NPS (98), BEP (24), and A20 (4).

Suriname’s exchange rate sees sharp rise

• Just before and after the elections, the exchange rate for the US dollar and euro surged dramatically, with the dollar reaching over SRD 39 and the euro surpassing SRD 44 in the middle of last week.

• Economist Steven Debipersad emphasized that this spike is not due to economic fundamentals, which remain positive, but is instead politically driven speculation linked to election transitions.

• The Central Bank of Suriname (CBvS) and the Ministry of Finance are monitoring the situation closely, holding internal meetings to discuss potential responses.

• Wealthy individuals are speculating heavily on the currency market, exploiting political uncertainty to drive up exchange rates, further destabilizing the monetary environment.

• Debipersad urged the new government to act swiftly with transparent governance, anti-corruption efforts, and clear monetary policies to build public confidence.

• He warned against using scarce foreign currency reserves for intervention, noting such actions could worsen inflation and liquidity issues if mismanaged.

• Although CBvS has conducted three currency auctions—most recently releasing US$ 15 million—experts dispute their effectiveness and advise caution.

• The exchange rate surge has already caused significant inflation in consumer goods and agricultural inputs, with fertilizer and chicken manure prices increasing sharply.

• Farmers are struggling to maintain profitability, with many leaving agriculture for construction due to rising input costs and better financial margins.

• Renters and home builders are also being hit hard, as many rents are in foreign currency and construction material prices have surged, worsening living costs.

Petronas accelerates oil exploration in Block 52 after promising finds

• Petronas is preparing for additional exploration drilling in Suriname’s offshore Block 52 following promising discoveries at Roystonea-1 and Fusaea-1.

• These discoveries are among just 19 commercial finds globally out of 75 high-impact wells, according to Westwood Global Energy.

• Energy firm Wood Mackenzie estimates that Roystonea and Fusaea could support an FPSO facility with a 100,000-barrel-per-day capacity.

• Staatsolie supports Block 52’s development and expects Petronas to make a final investment decision by 2026, with initial focus likely on gas production.

• A ten-year tax-free period for gas production, agreed between Staatsolie and Petronas, boosts the project's attractiveness.

• There is potential for a future FLNG project in Block 52, which Rystad Energy predicts could be operational by 2031.

• These developments follow the large-scale Block 58 oil project by TotalEnergies and APA Corporation, with production expected in 2028.

• Suriname is positioning itself as an emerging offshore energy hub, with the potential to become a significant exporter of oil and gas if both blocks succeed.