Page 4 - LatAmOil Week 14 2021

LatAmOil COMMENTARY LatAmOil

(Image: Staatsolie)
Suriname’s next steps

The South American country’s oil discoveries are cause for celebration, and proven lessons

from Africa will help make them work for everyone, write Clarence Seedorf and NJ Ayuk

THERE’S no question that the coronavirus discovery. The successful Sapakara West-1 well
(COVID-19) pandemic has sent global energy was actually the partners’ second find at Block
WHAT: markets reeling. Oil and gas has undeniably 58; they made Suriname’s first-ever offshore
Suriname’s government been one of the hardest-hit industries, with discovery at the nearby Maka Central-1 explo-
is looking to optimise prices still struggling to rebound from the ration well in January 2020. In fact, Apache is
the results of offshore oil collapse in demand during the first quarter of so convinced of the promise this region holds
development. 2020. Coupled with increasing concerns about that it dropped its Permian Basin rigs in Texas
climate change and its effect on conventional to concentrate more fully on Suriname.
WHY: energy production, it seems difficult to find a And though Apache and Total may have
The government has bright spot. been among the first to achieve drilling success
created a favourable But there is one, and it’s Suriname. offshore Suriname, they are clearly not alone.
business environment In the year since news reports first began ExxonMobil (US) and Petronas (Malaysia)
and can learn from describing a novel coronavirus in China, the announced a discovery in December 2020, and
Africa’s experiences.
resource-rich waters off the South American Shell has purchased Kosmos Energy’s participat-
nation have become the target for increased ing interests in the region.
WHAT NEXT: drilling activity, and a growing number of
Paramaribo should
ensure that its policy producers are taking a chance on the region’s Friendly fiscal policy
initiatives go beyond potential. The US Geological Survey (USGS) puts the
local-content laws. In April 2020, for example, Apache (US) and resource potential of the Guyana-Suriname
Total (France) reported a significant oil offshore basin at more than 13bn barrels of oil.

P4 www. NEWSBASE .com Week 14 08•April•2021