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TotalEnergies looks set to develop Suriname resources

Oil Rig

Bloomberg reports that it is looking likely TotalEnergies will go ahead with projects worth $9 billion to develop the oil and gas resources of Suriname.

The French energy company has not yet made a final investment decision for Suriname, but according to Bloomberg, it is already busy securing drilling rigs, crew and support vessels for development.

Four months ago, contractors were told by TotalEnergies to reserve capacity at a Chinese shipyard to construct a floating oil-production vessel. Bloomberg now cites unnamed sources familiar with tenders as saying that TotalEnergies is seeking to lease two drilling rigs. This has fuelled speculation that a final investment decision could be coming soon.

The move is part of a wider trend for offshore developments as operators compete for a limited number of production rigs and vessels. Wood Mackenzie Ltd.’s director for global exploration research, Julie Wilson, said to Bloomberg:

“There’s generally more of a consensus around the importance of upstream, especially among the majors. People are beginning to think that perhaps the energy transition is going to be more challenging.”

TotalEnergies, which also makes the Total coolant and metalworking products, declined to comment. In a country where 40% of the population live in poverty, the hope is that Suriname will emulate the success of Guyana, which is already producing oil. While Suriname’s discovered resources are not as extensive as those of its neighbours, even just a single major could have a positive impact on the economy and help fund social services.

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