Suriname and Guyana Initiate Joint Gas Reserve Collaboration
Suriname and Guyana are advancing toward a cooperative strategy for the joint exploitation of offshore gas reserves. Amidst positive discussions led by officials from both nations, including Staatsolie and Petronas, an exploration of development concepts is set to commence. A focus on strategic cooperation in oil and gas will guide future initiatives and investments.
Suriname and Guyana are progressing towards a collaborative approach for the exploitation of gas reserves located off their mutual coastlines. Annand Jagesar, the director of Staatsolie, articulated that while immediate results are not expected, the affirmation from both nations indicates a commitment to work together. Jagesar highlighted that years might be required to formulate a viable development strategy for the gas reserves. During a recent visit to Guyana by a Surinamese delegation led by Foreign Affairs Minister Albert Ramdin, discussions were held with Guyana’s Vice President Bharrat Jagdeo. Jagesar elaborated on the intention to jointly explore a development concept for extracting gas condensates from specific deposits, notably the Makka and Kwaskwasi discoveries in Suriname, adjacent to the border with Guyana, as well as the Haimara and Pluma discoveries in Guyana. “The biggest asset of a collaboration is scale. By merging, the scale could be achieved. But many other issues will also have to be investigated,” stated Jagesar. Minister Ramdin noted that the discussions occurred in a cooperative environment, underlining the necessity for synergy in gas development. Both entities will explore the joint potential and collaborate with Staatsolie. Strategies will be created based on ongoing exchanges of technical and business information, with a priority placed on establishing a strategic partnership in oil and gas within the next few months. Jagesar mentioned that in the wake of TotalEnergies and Apache Corporation’s announcement of the final investment decision (FID) for oil production in Block 58, Jagdeo reached out for discussions on gas reserves collaboration. Meanwhile, Staatsolie is also approaching a second FID for Block 52, where Malaysian Petronas has reportedly identified substantial recoverable oil reserves, potentially allowing for daily production of 100,000 barrels. Staatsolie has commenced discussions with Petronas regarding this initiative, with expectations for an FID announcement by 2027 and initial oil production by 2030. Furthermore, significant natural gas quantities have been discovered in Block 52, with negotiations ongoing to launch the first development project by 2031.
The collaboration between Suriname and Guyana emerges against the backdrop of significant oil and gas discoveries in the region. Both countries, members of the Caribbean Community (CARICOM), are strategically positioned to leverage their geographic proximity for mutual economic benefit. The ongoing negotiations between Staatsolie and Petronas signify robust international interest in exploiting the discovered resources, thereby enhancing the potential for energy security and economic growth for both nations. The ability to jointly develop gas reserves is vital, particularly as energy demands fluctuate worldwide and regional cooperation becomes increasingly crucial.
The initial steps taken by Suriname and Guyana towards joint exploitation of gas reserves signify a pivotal move in regional energy collaboration. As discussions advance, both countries demonstrate a shared commitment to harnessing their natural resources efficiently while prioritizing strategic economic partnerships. The anticipated outcomes from their cooperation may yield significant benefits in the long-term energy landscape of the Caribbean region.
Original Source: www.guardian.co.tt
