TotalEnergies Secures FID for GranMorgu Development in Suriname's Offshore Sector

On October 1, 2024, Patrick Pouyanné, Chairman and CEO of TotalEnergies, met with His Excellency Chandrikapersad Santokhi, President of Suriname, and Annand Jagesar, CEO of Staatsolie Maatschappij Suriname N.V., to announce the Final Investment Decision (FID) for the GranMorgu development in offshore Block 58. The name "GranMorgu," which translates to both "new dawn" and "Goliath grouper" in Sranan Tongo, signifies the project's significance.

The GranMorgu initiative aims to develop the Sapakara and Krabdagu oil discoveries, following a successful exploration and appraisal campaign completed in 2023. Located 150 kilometers offshore Suriname, these fields are estimated to hold recoverable reserves exceeding 750 million barrels. The project features a Floating Production Storage and Offloading (FPSO) unit capable of processing 220,000 barrels of oil per day, designed based on a proven and efficient model. The total investment for this ambitious project is around $10.5 billion, with first oil production anticipated in 2028. The FPSO is also designed to facilitate future tie-back opportunities, extending its production capacity.

TotalEnergies operates Block 58 with a 50% interest, alongside APA Corporation, which holds the other half. Staatsolie has expressed its intent to acquire up to a 20% stake in the development project. The partners have agreed that Staatsolie will contribute from the FID onwards and will finalize its interest by June 2025.

The GranMorgu project utilizes cutting-edge technology to reduce greenhouse gas emissions, targeting a scope 1 and 2 emissions intensity of under 16 kg CO2e per barrel of oil equivalent (boe). This is achieved through an all-electric FPSO configuration, the elimination of routine flaring, complete reinjection of associated gas, optimized power usage, and a permanent methane detection and monitoring system using a network of sensors.

The project is expected to significantly boost local content and job creation, contributing to the Surinamese economy. Paramaribo will serve as the hub for administrative and logistical activities, with local companies participating in logistics, well services, and the installation and operation of subsea systems and the FPSO. Local content is estimated to exceed $1 billion, creating over 6,000 jobs, including 2,000 direct and 4,000 indirect positions.

In conjunction with the FID announcement, TotalEnergies and APA entered into a Memorandum of Understanding with Suriname's Health Ministry to assist in the rehabilitation of two mother and child hospitals in Paramaribo.

Patrick Pouyanné expressed his gratitude for the support from the State of Suriname, highlighting the project's pioneering role in the country’s offshore development. President Santokhi called the FID a historic milestone that would create significant opportunities and attract global investors, while Annand Jagesar emphasized the project's potential to improve living standards for all Surinamese citizens.