Suriname's gas and oil production to begin soon 🛢️

Happy Monday!

This week we cover Suriname coming closer to making use of its oil and gas discoveries, an accusation of overspending by the government, and the government has begun slimming down its civil service.

Suriname’s gas prospects come closer to fruition.

• The Norwegian firm Rystad Energy predicts that Suriname's first standalone gas project could be operational by 2031 in Petronas-operated Block 52 off of Suriname’s Atlantic coast

• This projection is supported by a recent ten-year tax incentive that aims to stimulate gas reserve development. Three significant discoveries have been made in Block 52, with the latest at the Fusaea-1 well containing approximately 400 million barrels of oil in conjunction with the Roystonea-1 well.

• Petronas, a Malaysian state-owned company, is also evaluating the Sloanea-1 discovery, with the feasibility of a commercial gas field depending on the results from the Sloanea-2 appraisal well.

• The Letter of Agreement (LoA) provides a framework for gas reserve development and the potential inclusion of a 'gas addendum' to the 2013 production-sharing contract. Petronas has considered a floating liquefied natural gas (FLNG) project for this development.

• Block 52 is situated in the Guyana-Suriname basin, an area experiencing increased exploration activity influenced by ExxonMobil's successful discoveries and production in the nearby Stabroek Block. Petronas Suriname E&P and ExxonMobil each hold a 50% stake in Block 52.

• Overall, this news brings positive news to oil and gas development and possible future revenues for the country.

Accusations of excessive spending for the President’s birthday.

• Member of Parliament Melvin Bouva of the opposition party, the NDP (National Democratic Party) disclosed that around SRD 3.3 million was spent on the president’s birthday at the Presidential Palace for President Chan Santokhi’s 65th birthday.

• Bouva criticized this use of state funds, calling it excessive and inappropriate, and argued for better allocation of resources. He compared this situation to the dismissal of former minister Alice Amafo for similar reasons and suggested it might violate the Comptabiliteitswet (Accounting Act), calling for a thorough investigation.

• During discussions in Parliament, Bouva raised the issue of these expenditures, which drew criticism from both sides. Mahinder Jogi (VHP) believed the proposed law gave too much power to the National Public Procurement Council.

• Member of Parliament Stephen Tsang (NDP) highlighted ongoing corruption scandals and opposed appointing a new commission to investigate the thanksgiving service expenses, noting existing investigations.

• Bouva cited ministerial approval of the expenses and condemned the lavish spending while others struggle in the country.

• Jogi responded that regulations were followed and suggested Bouva take legal action if he believed otherwise, accusing Bouva of politicizing the issue.

President Santokhi’s response

• President Chan Santokhi refuted the claims that SRD 3.3 million was used from state funds for his birthday and called the accusations a staged show in the National Assembly.

• He accused Assembly member Melvin Bouva of spreading falsehoods and stated the claims were not verified with him.

• Santokhi clarified that his birthday was funded privately by supporters and actual costs were about SRD 1.1 million and he spent his celebration at home.

• He explained that the palace event included hosting children’s and elderly homes, and a reception for diplomats, emphasizing his presidential privileges.

• Santokhi has tasked a legal team with investigating the matter, asserting that misinformation was provided and such actions must stop.

A slimming down of the civil service has begun

• The Ministry of Education, Science, and Culture has begun removing inactive employees from the payroll, with 1,032 people impacted for failing to register despite multiple reminders.

• Education Minister Henri Ori explained that this is part of a broader effort to eliminate 'ghost employees' from the system.

• Despite a three-year registration period with repeated notifications, many did not comply, leading to the stoppage of their salaries in May.

• The affected individuals include those legally absent, people working abroad, and political appointees who never assumed their roles.

• Ori emphasized the importance of adhering to standards and noted that those who believe they were wrongly removed can prove their case for reinstatement. If verified, their salaries will be restored retroactively, although this process will take about a month.