Happy Monday!

This week we cover the announcement by TotalEnergies of the decision to process oil on Suriname’s north coast as well as Suriname’s attempt to be the first country to sell carbon credits under the Paris Agreement.

TotalEnergies announced the processing decision for Surinamese oil.

• TotalEnergies announced plans to begin processing the discovery of 700 million barrels of oil off the North coast starting in 2028. Due to lower production costs than the global average, the project is expected to be very profitable for the company and the state.

• TotalEnergies CEO Patrick Pouyanné and Annand Jagesar, the CEO of Staatsolie, the State oil company, reported the discovery at two drilling locations that offer massive profit potential.

• This development is considered historic, and it is expected to lead to economic growth and the potential eradication of poverty in Suriname with proper management.

• However, emphasis is being placed on responsible governance of resources to avoid the resource curse of other countries like Venezuela and Nigeria.

• Staatsolie’s CEO, Jagesar also stated that the discovery and announcement will lead to increased investment leading up to 2028 in the forms of hospitality with restaurants and hotels. He further hopes that the International Monetary Fund (IMF) will consider such a discovery in the analysis of Suriname’s economic recovery as oil revenues could pull Suriname out of its hole and remove the necessity for stringent austerity measures.

  President’s Reaction to Total Energies announcement on Surinamese oil investment.

• Suriname’s President Chan Santokhi is enthused about the announcement from TotalEnergies, which plans to start processing 700 million barrels of oil on Suriname’s coast by 2028. This could potentially bring in between US$16 to US$26 billion dollars for the country, a significant amount for its population of 600,000.

• The president sees this as a way to boost the country’s economy and improve living standards. He also sought ways to solve the immediate economic crisis.

• The CEO of TotalEnergies, Patrick Jean Pouyanné, and his team met with President Santokhi to share the news, he expressed hope and optimism for Suriname's future.

• As US$9 billion will be invested into the country for the project which is expected to reap 200,000 barrels a day, expected profits from the state are currently at US$20 billion.

• The government is committed to ensuring the success of the project and calls on the community to maximize the benefits of the oil exploitation. Overall, this development is seen as a promising opportunity for Suriname's growth and prosperity.

Suriname to be the first country to sell carbon credits under the UN’s 2015 Paris Agreement.

• Suriname is planning to be the first country to sell carbon credits under the UN’s Paris Agreement which was set up in 2015. The initiative hopes to attract investors with government-backed credits adhering to UN guidelines as companies are becoming more cautious about buying from voluntary carbon markets due to concerns about project performance.

• The carbon credits will be generated based on Suriname's baseline, which registers the carbon stocks in its forests with the United Nations. If Suriname protects its forests, increasing carbon stocks, it can package these gains in the form of carbon credits.

• Suriname, with its extensive rainforest that absorbs more greenhouse gases than it emits, is one of the few "carbon-negative" countries in the world and will strive to sell International Transferable Mitigation Outcomes (ITMOs) to other countries or companies that can use them for their own climate goals.

• While these credits are the source of some controversy, Suriname has been a leader in the reduction of carbon dioxide in its atmosphere.

• Suriname will submit its first report to the UN, to authorize ITMOs to meet various criteria, including how the sales proceeds will be spent.

• While the system is far from perfect, some consider it better than the voluntary market as it falls on the buyer to assess the credits and seek additional government information if required.

• However, concerns have been raised about countries that are seeking credit income without effectively reducing emissions or enhancing their forests' carbon capture capacity.