Suriname's $26 Billion Oil Bet Is Finally Paying Off
Middle East turmoil, centered on the U.S. war with Iran, is playing havoc with world energy markets. An ongoing dispute over access to the Strait of Hormuz, through which a fifth of world oil and natural gas supply is shipped, is causing prices to surge. This is a boon for South America's oil industry, particularly Suriname's emerging petroleum boom, which was delayed by conflicting drilling…
Suriname's $26 billion oil bet is finally paying off. The South American nation is on the brink of becoming South America's next major oil-producing country, following the discovery of commercially exploitable hydrocarbons. Five major oil discoveries in offshore Block 58, which began in 2020 with the Maka Central-1 exploration well, confirmed the presence of these resources.
TotalEnergies, which holds a 50% working interest in Block 58, and 50% partner APA Corporation, approved the development of the deepwater GranMorgu project. The project, which will come online in 2028, will feature a floating production, storage and offloading unit (FPSO) with a capacity of 220,000 barrels per day.
Staatsolie, Suriname's state-controlled energy company, acquired a 40% stake in the GranMorgu project, using a $1.6 billion loan and a March 2025 bond issue to finance the acquisition. The project is expected to generate up to $26 billion in fiscal income for the economically challenged nation, which has been battling an economic crisis since 2021.
GranMorgu will deliver a massive economic windfall for Suriname, with its estimated recoverable resources of 760 million barrels of crude oil, including the Sapakara and Krabdagu discoveries.
Although the carbon footprint of the GranMorgu project is higher than neighboring Brazil and Guyana, the petroleum lifted in offshore Suriname is believed to be light and sweet, with a low sulfur content and few impurities. This makes it less complex and cheaper to process into high-grade, low-carbon-emission fuels. Suriname's oil boom extends beyond Block 58, with offshore Block 52 demonstrating considerable hydrocarbon potential.
Malaysia's Petronas, holding an 80% working interest in Block 52, has made significant drilling successes in the area, including the Declaration of Commerciality for the Sloanea field. These discoveries confirm the viability of Block 52 and its tremendous oil potential, with Suriname's next major hydrocarbon field destined to be found in this offshore acreage.
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