Suriname's state-owned company, Staatsolie, aims to secure $1.5 billion in bank financing this year to participate in the nation's first major offshore project, led by TotalEnergies. The project in Block 58 is crucial as it positions Suriname as a competitor to Guyana in offshore oil and gas production upon its first oil extraction in 2028.
Staatsolie plans to collaborate with TotalEnergies and APA Corp for the project, which received a green light in October. The company's managing director, Annand Jagesar, disclosed ongoing discussions with major international banks for funding. The total project cost is estimated at $12.2 billion, with Staatsolie requiring $2.4 billion.
Staatsolie has engaged in initial contracts worth up to $7 billion, representing 10% progress in the project. To meet financial obligations, the company has contributed $175 million in cash and issued bonds, foreseeing exponential revenue growth to $1.77 billion by 2029.
Staatsolie's future involvement in a potential natural gas project with Petronas could necessitate further fundraising. Participation in Block 52, an upcoming natural gas endeavor, may require an additional $2 billion investment, while revenue from Block 58 is projected to offset financing demands.
The revenue from ongoing projects could cover funding gaps, facilitating Staatsolie's financial sustainability. With strategic planning and revenue from Block 58 maximizing by 2031, the company's financial outlook remains optimistic.