With the approval of the development plan and the announcement of the final investment decision for a production field in Block 58, 2024 marked a historic milestone for Staatsolie Maatschappij Suriname N.V. and Suriname. The production and financial results of the past year confirm the solid foundation of our company.
In 2024, developments in the offshore sector, particularly in Block 58, necessitated significant efforts. Staatsolie has delivered strong performance in its ongoing operations and focused on achieving various objectives to continue making a substantial contribution to the Surinamese economy and society.
On 30 September, Staatsolie approved the development plan for the GranMorgu field in Block 58, followed by TotalEnergies' announcement on October 1st of a Final Investment Decision (FID) for the project. Patrick Pouyanné, Chairman and CEO of TotalEnergies, visited Suriname for this occasion. The name GranMorgu is derived from a fish species found in Surinamese coastal waters and symbolizes a new beginning for Suriname, which is currently facing economic challenges.
First oil production from the GranMorgu field is expected in 2028, according to the project timeline. Contracts for major production facilities have been signed, securing a significant portion of the capital investment. Construction of the Floating Production, Storage and Offloading (FPSO) unit is underway. In the coming years, wells will be drilled, subsea installations and pipelines will be laid, and modules will be installed on the already acquired floating platform. In particular, the operational activities for drilling the wells will take place from Suriname. This will have a significant spin-off for the Surinamese economy, due to the employment of local labor and the local procurement of goods and services (local content). Over the past year, Staatsolie has continued to inform local businesses and other stakeholders about the opportunities available.
In March, a Letter of Agreement (LoA) was signed with PETRONAS for Block 52. The LoA is necessary to further investigate the gas discovery made in 2020 with the Sloanea-1 exploration well. The agreement outlines the key terms and conditions for exploring the commercial viability of developing a gas field in Block 52. As a direct result of the LoA, the successful Sloanea-2 exploration well, including a production test, was drilled in the second quarter. Based on this success, Petronas has initiated pre-development activities.
On 15 May 2024, PETRONAS confirmed a discovery at the Fusaea-1 exploration well in Block 52. This discovery is being further evaluated to determine the size of the reservoir. Additionally, studies will be conducted to assess the potential for developing the Fusaea-1 discovery together with the earlier Roystonea-1 discovery and further exploration. Two exploration wells are planned to be drilled in 2025 to facilitate these studies.
On 13 September, Staatsolie and PetroChina Investment Suriname B.V. (PetroChina), a subsidiary of China National Petroleum Corporation, signed production sharing contracts for offshore blocks 14 and 15. With these contracts, PetroChina has obtained exploration, development, and production rights in both blocks. Staatsolie, through its subsidiary Paradise Oil Company N.V. (POC), holds a thirty percent participating interest.
Financial Results
The projected consolidated revenue for 2024 is US$ 720 million (US$ 722 million in 2023). Pre-tax profit is estimated at US$ 429 million (US$ 426 million in 2023). Earnings before interest, taxes, depreciation, and amortization (EBITDA) are approximately US$ 600 million (US$ 632 million in 2023). The contribution to the government’s treasury amounts to nearly US$ 390 million (US$ 335 million in 2023) in the form of taxes, dividends, and royalties from Staatsolie’s participation in gold mines. Staatsolie has once again made a significant contribution to Suriname’s Gross Domestic Product (GDP). Staatsolie’s contribution to GDP in 2024 is approximately eight percent of the total GDP, representing about 32 percent of total government revenue in 2024.
Production Results
Approximately 6.4 million barrels of Saramacca Crude were produced (6.27 million in 2023). The increased production is attributed to various improvement projects initiated or ongoing in recent years.
Approximately 3 million barrels of high-quality diesel and gasoline were produced at the Staatsolie refinery (3.16 million in 2023). The production target for this year was set taking into account the refinery being out of service during the major maintenance overhaul. This quadrennial maintenance overhaul was successfully and safely completed within time and budget. Several improvement projects were carried out, contributing to more efficient refinery operations.
Staatsolie's subsidiary, Staatsolie Power Company Suriname N.V. (SPCS), generated approximately 1.41 million megawatt hours (MWh) of electricity, accounting for 67 percent of Suriname's electricity demand. Approximately 42 percent of the electricity demand was supplied from the SPCS Brokopondo hydropower plant.
Subsidiary GOw2 maintained its market share of 55 percent in 2024. This year also saw an expansion of our retail network as part of the World Class Retail Network project. Two new service stations, owned and operated by dealers, were opened. The complete renovation of three company-owned stations has commenced and will be completed in 2025. In the coming years, several GOw2 service stations will be renovated, contributing to improved customer experience and maintaining market share in the retail segment. As part of product innovation, GOw2 introduced gasoline and diesel with additives under the NRG+ brand this year.
Corporate Social Responsibility
Staatsolie is committed to sustainable business practices and the principles of good governance. The company strives to create a healthy and safe environment for its employees and the communities in which it operates. Based on these principles, Staatsolie and the Staatsolie Foundation for Community Development together invested approximately US$ 2.6 million in social initiatives in 2024. Investments were made in areas such as healthcare, education, and support for the disadvantaged. Through its participation in gold mines, Staatsolie also contributed to the socio-economic programs of its partners Newmont and Rosebel Gold Mine. Additionally, Staatsolie's offshore partners have made significant social investments. This includes the announcement by TotalEnergies and partner APA of a US$ 13 million donation to maternal and child care projects at the Academic Hospital Paramaribo and the 's Lands Hospitaal.
Outlook 2025
Staatsolie will participate in the GranMorgu project in Block 58 up to a maximum of twenty percent. The company is able to do this thanks to its solid performance in recent years, a strong track record in financial management, and sustainable relationships with international, regional, and local banks, as well as local and regional investors. Upon announcing the final investment decision, TotalEnergies indicated that US$ 10.5 billion will be invested in the GranMorgu project. However, this does not include the costs of inflation and unforeseen costs. Including these costs, the total investment is estimated at US$ 13.2 billion. According to current figures,
Staatsolie will have to contribute US$ 2.6 billion. A portion of this amount will be raised through the issuance of new bonds. The other part will be financed through loans and/or partnerships and an own contribution (which has already been secured). The launch of the bond issue is scheduled for January 2025. More information about, among other things, the term, interest rate, size of the denominations, and how to subscribe, will follow from the launch.
Offshore, various companies will continue their exploration activities in their respective blocks. Five exploration wells have already been committed for 2025. Staatsolie will continue to market the remaining unexplored offshore area to the oil and gas industry. A wealth of geological information is now available, while seismic and other geological surveys are underway. The aim is to contract as much of the offshore area as possible.
Regarding onshore oil production, projects will be continued and started to maintain current oil production levels. With the implementation of various exploration programs, including in Coronie and the Uitkijk area, efforts will be made to find new onshore oil reserves.
In 2025, work will continue to increase the generating capacity of the Brokopondo hydroelectric power plant. This is to be achieved through the implementation of a multi-year program in which the turbines of three of the six generating units will be optimized. Staatsolie will also continue to explore the possibilities of green energy. Staatsolie intends to start, after obtaining approval from regulatory authorities, the construction of a solar power plant with a generating capacity of 30 megawatt-peak (MWp).
Based on its core principle of "Confidence in our own abilities," Staatsolie has laid a solid foundation for the further development of the Surinamese oil and gas industry. With our vision of "Energizing a bright future for Suriname," we remain committed to ensuring that Suriname benefits maximally from the opportunities that have arisen offshore. Staatsolie therefore counts on the continued support of all stakeholders - the shareholder, supervisory board, employees, partners, service providers, customers, and the Surinamese community. Their support and commitment have contributed enormously to the results achieved in 2024.
Confidence in our own abilities
