Staatsolie will participate in the development of the first offshore oil production field in Block 58. To finance our participation, we are considering various options, including a bond issuance in 2025.
According to the Production Sharing Contract for Block 58, Staatsolie has the right to participate up to a maximum of twenty percent from the development of the first oil production field. The Final Investment Decision (FID) for Block 58 will be announced by partners TotalEnergies and APA Corporation in the fourth quarter of this year.
Staatsolie estimates that, with maximum participation, the financing requirement will exceed US$ 1.8 billion. We are considering various options to finance our participation, including our own cash reserves, bonds, bank loans, partnerships with strategic and/or non-strategic partners, and other financing forms or a combination thereof.
Staatsolie intends to utilize one of these options, the planned issuance of new bonds, to secure the necessary investment capital. The bond issuance will be launched in January 2025 and closed in March. The Surinamese community, including existing bondholders, will once again have the opportunity to participate, as they did in our three previous successful bond issuances. We aim for maximum participation from the Surinamese market. Therefore, we will structure the issuance in such a way that participation is simple and accessible. Among other things, the bonds will be available in small denominations, as with previous issuances. In the coming months, we will provide more information, including details on the interest rate and other terms and conditions. For this planned bond issuance, De Surinaamsche Bank (DSB) has been appointed as the arranger.
The current Staatsolie bonds were issued in 2020 and mature on September 23, 2025 (5.5 years at seven percent interest) and March 23, 2027 (seven years at 7.5 percent interest), respectively. The semi-annual interest payments on these bonds are made punctually.
Confidence in our own abilities
