📞 Telesur CEO suddenly resigns during large fraud

Happy Monday!

This week we discuss Telesur’s fraud case of SRD 71 million and their CEO’s sudden resignation, strikes from gas station owners for higher profits, the IMF’s demands for Suriname, and developments in Suriname’s oil and gas sector

Antonius, CEO of Telesur, mysteriously resigned during largest fraud case in its history

• A large-scale calling card fraud worth SRD 71 million has been discovered at Telesur, leading to an employee's arrest.

• Many customers complained about being unable to top up their calling cards due to tampering, and initially, the company ignored their concerns.

• Telesur eventually acknowledged the issue, blocked the fake cards, and transferred credit to affected customers electronically.

• Amidst the fraud scandal, Telesur's CEO, Mike Antonius, resigned for personal reasons, sparking speculation about his involvement in the fraud.

• The Supervisory Board appointed Doric Ramlakhan as the acting CEO and expressed confidence in his leadership abilities.

• There has been no further explanation for Antonius' resignation, fueling rumors and speculation.

• Concerns have been raised about the lack of transparency in the situation and the potential severance package for Antonius.

• The Supervisory Board praised Antonius but have not addressed any of concerns of the broader public or various news agencies.

Gas station owners strike to demand higher profit margins amid falling gas prices.

• The SSEB (Surinamese Service Stations and Operators Association) is in ongoing discussions with the government, seeking a higher, separate profit margin for gas station owners, not shared with oil companies.

• The government announced an increase in the profit margin from 12.5 to 16 dollar cents, but the SSEB demands that the margin for gas stations be fixed by a State Decree.

• Despite the government's announcement to increase the pump price at midnight, gas stations remain closed as a protest by SSEB members.

• The oil companies have informed retailers of the price adjustments, but the government has not explained the sudden pump price increase.

• Some gas stations remain open, such as those under the Roy Boedhoe/Rubis brand, while others stay closed as part of the SSEB's action.

• The SSEB insists that until the government clearly defines the profit margin for gas stations separately from oil companies, the closure will continue.

• Oil prices on the world market have decreased while oil prices at the gas stations have largely not reflected this change with SSEB deflecting the blame towards the government.

IMF states clear demands for final trajectory of loan

• The state budget of Suriname is significantly off track, with a gap of SRD 1.8 billion that needs to be addressed.

• The IMF has set two conditions before approving the 7th tranche: a drastic reduction in subsidies to NV Energie Bedrijven Suriname (EBS) and a debt repayment plan for the State's SRD 8 billion debt to the Central Bank of Suriname (CBvS).

• If these conditions are not met, the IMF program could be halted.

• The IMF Staff Mission, led by Anastacia Guscina, emphasized the need for macroeconomic stability, noting positive signs like falling inflation and a stable exchange rate, but warned of issues with the state budget.

• The EBS subsidy is considered too high, and there is concern about too much money going to those who do not need it; further reform of the civil service is needed.

• The IMF cautioned against high wage increases, stressing that excessive demands from unions could threaten economic stability and reignite inflation.

• All government departments must maintain budgetary discipline, not just the Ministry of Finance & Planning, to avoid overspending.

• Minister Stanley Raghoebarsing highlighted the excessive subsidies to EBS and the need for increased rates to flow back to the State Treasury, while Staatsolie's dividends so far have been used to support EBS.

Updates on Suriname’s offshore oil and gas

• Petronas is considering a standalone floating liquefied natural gas (FLNG) project offshore Suriname after a successful drilling operation in Block 52.

• The Sloanea-2 appraisal well in Block 52 confirmed significant prospects, strengthening the potential for an FLNG development in the Suriname-Guyana basin.

• The Sloanea-1 well discovered hydrocarbon-bearing sandstone packages in 2020, supporting the idea of future development.

• Petronas is assessing an integrated strategy for both gas and oil production in Block 52, which includes the Sloanea gas reservoir and the Roystonea and Fusaea oil fields.

• Roystonea and Fusaea, located close to each other, have estimated recoverable resources of nearly 400 million barrels of oil, possibly supporting an FPSO vessel with a 100,000 barrels per day capacity.

• Petronas and ExxonMobil, equal co-investors in Block 52, have an agreement with Staatsolie for a 10-year tax-free period from the start of gas production.

• Equinor has exited its exploration activities in Suriname, transferring its interest in Block 59 to Hess Corp as part of a strategic shift to focus on core areas and renewable energy investments.

• ExxonMobil retains its presence in Suriname with Block 52, despite transferring operation of Block 59 to Hess in a non-financial transaction.