😠Vice president loses temper during protest

Happy Monday!

This week we cover the protests in Albina fueled by the energy disruptions, Staatsolie’s developments in oil and gas, and results of the negotiations between the government and unions.

Vice president loses temper at ‘booing’ and orders removal or protestors with warning shorts while residents protest for solution to power outages

• Hundreds of people in Albina barricaded the East-West connection at Marwina Hospital around midnight, demanding solutions to frequent power outages and other daily issues.

• Parliament member Claudie Sabajo, a resident of Albina, supports the protesters, highlighting that the community has faced daily power cuts for three months without any resolution.

• Protesters refuse to lift the barricade until the government provides concrete solutions, as power outages affect essential services, including the morgue.

• The protest is also driven by frustrations with poor healthcare, education, and water supply, among other issues in the district.

• The situation has caused disruptions, with people unable to travel to work, the city, or French Guiana, creating a long line of stranded commuters.

• The protesters demand action from Vice President Ronnie Brunswijk, with many stating that the barricade will remain until a government official commits to solutions.

• When Brunswijk arrived, he lost his temper after being heckled, telling protesters that he couldn’t guarantee a solution due to a lack of funds.

• He ordered the removal of the barricades, with armed police, soldiers, and the fire brigade present; warning shots were fired, and the protest was broadcast live.

• Minister Kenneth Amoksi, who arrived later, claimed the EBS generator was repaired, but protesters disputed this, stating the power had gone out again, leading to a tense exchange.

• Protest leaders, including artist Kadensi, were disappointed by the outcome, expressing frustration that no real solution was found after hours of protesting in harsh conditions.

EBS director Brunswijk claims innocence during protest at Albina

• Albina faces electricity issues due to insufficient capacity, outdated machines, and delivery problems.

• A decision by the Supervisory Board to reject the purchase of a refurbished machine has worsened the situation, as there is no machine to fully resolve the issues.

• The outdated machinery causes weekly interruptions for maintenance, with two machines under repair in Paramaribo and two old machines still functioning but prone to breakdowns.

• EBS is forced to do 'load shedding,' choosing areas to cut off from electricity when capacity is insufficient.

• A refurbished machine with a factory guarantee was found in the US, but the Supervisory Board rejected its purchase due to a USD 300,000 price difference with a new machine. 

• Rumors have spread that the director Leo Brunswijk is behind the shady company offering this used generator for a substantial premium (netting him over USD 300,000).

• The Supervisory Board argues it rejected the purchase because it wanted more options, finding the 23-year-old generator too risky. 

• The Supervisory Board defends its role, stating it is responsible for questioning expensive purchases and rejecting hasty decisions, while regretting the accusatory tone of the director.

Staatsolie will participate in Block 58; issues bond

• Staatsolie has the right to a 20% participation in the first oil production field in Block 58, requiring more than US$ 1.8 billion for financing.

• To fund this, Staatsolie is considering options such as using cash reserves, bonds, bank loans, strategic partnerships, or a combination of these methods.

• The Final Investment Decision for Block 58 will be announced in Q4 2024 by partners TotalEnergies and APA Corporation, with Staatsolie planning a bond issue in early 2025.

• The bond issue will be structured for broad participation, including small denominations, with De Surinaamsche Bank appointed as the arranger.

• Staatsolie’s current bonds, issued in 2020, are set to mature in 2025 and 2027 with semi-annual interest payments.

Staatsolie and PetroChina conclude production sharing contracts

• Staatsolie signed production sharing contracts with PetroChina for offshore Blocks 14 and 15, securing a 30% participation share through its subsidiary Paradise Oil Company.

• PetroChina obtained exploration, development, and production rights in these blocks, which are located in the Suriname-Guyana Basin.

• Staatsolie aims to secure as much of the basin as possible through partnerships and data analysis to improve its understanding of geology and increase the chances of finding oil and gas.

Government approves salary adjustment and other matters

• After five months of consultation, the government and unions agreed on energy rate adjustments, leading to slightly lower rates for the upcoming month.

• Rates will be adjusted monthly based on the exchange rate, fuel prices, and the energy mix, with more information to be provided at a joint press conference.

• President Chan Santokhi and ministers held discussions with unions, aiming to make energy rates affordable while keeping EBS operational.

• The government will continue structured consultations with unions to address future societal challenges and maintain mutual respect.

• During an emergency meeting, the government approved financial resources for healthcare, including kidney dialysis and a kidney transplant mission.

• The government also approved the expansion of rice production by developing 10,000 hectares along the Nickerie River for cultivation, financed by the IDB.

• New allowances were granted for the Fire Brigade and Penitentiary Officers, along with refunds of withheld SZF premiums for security officers.

• The president emphasized the importance of efficient fuel use and expressed gratitude to civil servants and unions for their efforts to stabilize the country’s crisis.