🛢️ FID signed in Suriname

Happy Monday!

This week we discuss the historic FID announcement of TotalEnergies, the World Bank’s future 4-year partnership with Suriname, and protests by the Fishermen’s Collective.

FID signed, historic day for Suriname

• TotalEnergies' CEO and Suriname's President officially announce the investment decision, with Staatsolie considering a 20% stake.

• TotalEnergies is set to make a $10 billion investment in Suriname’s first offshore oil and gas project in the Gran Morgu field.

• Gran Morgu, located in Block 58, has an estimated 700 million barrels of recoverable resources, neighboring ExxonMobil’s find in Guyana.

• Staatsolie projects Suriname’s oil and gas resources could be valued between $16 billion and $26 billion, far exceeding the country’s current $4.34 billion GDP.

• The project is scheduled to begin producing oil in early 2028 using a floating production, storage, and offloading vessel with a 200,000 barrel per day capacity.

• TotalEnergies is focused on low-cost, low-emission oil projects, with Gran Morgu oil costing less than $20 a barrel and emissions capped at 18 kg CO2 per barrel.

• The project involves drilling 32 wells over four years, representing Suriname's largest investment to date.

• Five oil discoveries have been made in Block 58 since 2019, with Sapakara South and Krabdagu holding about 750 million barrels of reserves.

• GranMorgu is named after the Goliath Grouper fish, symbolizing the project’s scale and long-term productivity, with oil production expected to last 20-25 years.

World Bank Approves 4-Year Partnership with Suriname

• The World Bank approved a four-year partnership with Suriname to support long-term development, focusing on economic strengthening, inclusive growth, and governance improvement.

• The strategy aligns with Suriname’s 2022-2026 development plan and leverages recent offshore oil discoveries for sustainable opportunities.

• Key goals include job creation, reducing citizen vulnerabilities, and preparing the workforce through better education and training, especially for emerging sectors.

• The strategy aims to improve the business climate, promote economic diversification, and enhance resilience to climate and disaster risks.

• With 93% of Suriname covered by forests, preserving them and supporting eco-friendly livelihoods for indigenous and Maroon communities is a priority.

• The World Bank will assist Suriname in accessing carbon markets, promoting sustainable mining, and strengthening community resilience.

• Minister of Finance Stanley Raghoebarsing highlighted the focus on job creation, education, and responsible resource management as essential for future prosperity.

• The strategy was developed through consultations with the government, private sector, civil society, and development partners to address Suriname’s fiscal challenges and ensure inclusive growth.

Fishermen's collective wants solution to sharp decline in fish catch

• The Fishermen's Collective held a peaceful protest, petitioning President Chan Santokhi and Assembly Chairman Marinus Bee for solutions to high fuel prices, overfishing, safety issues, and illegal fishing.

• The fishermen are frustrated by the lack of progress after previous discussions with the Minister of Agriculture, Livestock, and Fisheries, demanding a response within 48 hours or threatening to escalate actions.

• Fishermen from Saramacca, Galibi, and Commewijne participated, marching to the Office of the President and National Assembly after suffering major losses due to a sudden sharp decline in fish.

• Costs for fishing trips have risen, with each 10-day venture costing between SRD 100,000 and SRD 200,000, while fish buyers are lowering prices due to stagnating demand.

• Overfishing has led to higher costs and greater challenges for fishermen to meet their quotas, exacerbated by competition from large companies and illegal fishermen.

• Safety at sea remains a critical concern, with no support from the absent Coast Guard or Maritime Police, and memories of the 2018 murders of fishermen at sea still haunting the community.

• Petitions were received by government officials, not the President or Assembly Chairman directly, and the fishermen await a response within the agreed 48-hour window.

• Willem Mohamedhoesein, chairman of the Fishermen's Collective, remains hopeful for a resolution, expressing belief in President Santokhi’s ability to address the issues.

• The president has responded to receive them in his office tomorrow (Tuesday)