Happy Monday!

This week we cover more Surinamese oil discoveries on Suriname’s coastline as well as another visit from the IMF as Suriname continues its road to recovery. The government has also suspended gold concessions from Goldline Mining which was controversially given in opposition to local communities.

More Oil discoveries on the Surinamese coast.

Petronas, a Malaysian company, has discovered oil in the Surinamese offshore area's Block 52 through the Roystonea-1 exploration well. The well was successfully drilled to a depth of 5,315 meters, uncovering oil-bearing sand layers. Further analysis will determine the reservoir's size and the potential for development alongside the Sloanea-1 discovery. Staatsolie is excited about this discovery, as it contributes to Suriname's offshore oil and gas sector development and showcases the potential of the Suriname-Guyana basin. Petronas plans to explore further and develop the area. Block 52 covers 4,749 square kilometers and is operated by Petronas with a 50% stake, shared with ExxonMobil. Additionally, Petronas is involved in Blocks 53 and 48.

Another IMF visit to Suriname along the road to recovery.

A delegation from the International Monetary Fund (IMF), led by Anastasia Guscina, is in Suriname to conduct the fourth review of the Extended Fund Facility program. If this review is positive, Suriname will receive an additional $52 million. The program agreed upon in December 2021, aims to support Suriname's Recovery Plan, including budget consolidation, debt restructuring, a social program for vulnerable individuals, monetary policy improvements, financial sector stability, and anti-corruption efforts.

The IMF delegation is engaging in discussions with various Surinamese ministries and institutions, including the Ministry of Finance and Planning, the Ministry of Home Affairs, the Central Bank, and others, to assess the program's progress. At the end of their visit, there will be meetings with the leadership of the National Assembly, the Vice President, and the President. A joint press conference is scheduled for November 8th to discuss the visit's outcomes.

Investment from the Inter-American Development Bank for Infrastructure along the route to Guyana.

The construction company Baitali is receiving a $5 million loan from IDB Invest to rehabilitate the Jenny-Henar road in Suriname, a project aimed at improving connectivity and integration within the country and the region. This initiative is part of Suriname's National Development Plan 2017-2021. The loan will support greater connectivity in the northwestern part of Suriname, connecting Nickerie, a critical agricultural district, with the port and city of Paramaribo. Additionally, it will enhance economic integration with neighboring countries, particularly Guyana.

IDB Invest has collaborated with Baitali to establish an environmental and social action plan to ensure that the construction activities align with sustainability policies. IDB Invest is also providing financial support and guidance to Baitali for implementing best practices in corporate governance.

This project reflects IDB Invest's commitment to supporting critical infrastructure projects, particularly in transportation, regional connectivity, and urban development, with a focus on small island economies in the region. It is expected to contribute to UN Sustainable Development Goals related to economic growth and infrastructure development.

Baitali and IDB Invest see this partnership as a way to seize opportunities and promote development in Suriname by investing in essential infrastructure. The collaboration aims to create jobs, enhance competitiveness, and facilitate trade, ultimately benefiting Suriname and the Caribbean region.

Suriname suspends gold concessions due to environmental concerns.

The Surinamese government has chosen to suspend the ministerial decision granted to Goldline Mining NV for a period of six months. This suspension is based on a presidential decision, with President Chan Santokhi considering various factors.

Goldline Mining NV had obtained rights for the exploitation of construction materials (natural stone, gravel) in the Sipaliwini district and river sand in the Nickerie district. However, this decision has raised concerns within local communities, particularly those near the concessions. There is doubt among the communities, including Kabalebo, that this concession might involve gold mining, which they strongly oppose. They fear that such activities could lead to water and environmental pollution, affecting their daily livelihoods and rice cultivation in Nickerie.

The government believes that these concessions require further investigation, particularly due to concerns raised in the parliament. To prevent any legal actions in the designated areas, the government has decided to suspend the decision for a six-month period, starting immediately. Relevant authorities and organizations have been informed of this presidential decision.