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These events also had a negative impact on the conventional oil asset base and the operational
company’s financial performance. Gran Tierra control for capital allocation and timing, while
stressed, though, that it had taken steps to maintaining a low-cost structure,” he was
ensure its financial viability. It reported that it quoted as saying in the statement. “As we move
had worked to bring operating costs and capital forward, we remain agile in the execution of our
expenditures down and said it had successfully strategy as we plan to resume development and
finalised the semi-annual re-determination of workover activities in Acordionero and restart
its syndicated credit facility. the majority of shut-in oilfields during the sec-
Gary Guidry, the firm’s president and CEO, ond half of 2020. We will safely and diligently
said that these actions would benefit Gran Tierra commence operations with a key objective of
during the second half of 2020. “We believe we finishing 2020 strong to set up for an exciting
are well-positioned to withstand the current 2021. We believe that Gran Tierra is well-posi-
volatile environment with our low base decline, tioned to thrive in 2021 and beyond.” ™

SURINAME
Staatsolie hoping to join Block 58 project

STAATSOLIE, the national oil company (NOC) reporters that his government intended to set
of Suriname, has said it may seek its own stake in up a national “savings and stabilisation fund” in
Block 58, an offshore licence area where Apache order to ensure that future earnings from Block
(US) and its partner Total (France) have made 58 and other offshore licence areas. Since Para-
three oil discoveries. maribo is due to receive 60-70% of all revenues
According to Agnes Moensi-Sokowikromo, from the sale of the country’s oil, it is aiming to
Staatsolie’s acting general manager, the NOC is “make sure there are regulations that ensure the
eager to join the project. Under its contract with oil and the income from the oil will be used for
Apache and Total, the company has the right to sustainable development,” he remarked.
acquire up to 20% of equity in Block 58, she told Apache announced its first discovery of
reporters in Paramaribo at the weekend. hydrocarbons in Suriname’s offshore zone in
Moensi-Sokowikromo did not say whether January of this year. According to the Wood
Staatsolie intended to take the full 20% stake. Mackenzie energy consultancy, the company’s
She did note, though, that Staatsolie might have first exploration well, Maka Central-1, may
difficulty securing the financing needed to join contain 300mn barrels of crude oil, 150mn bar-
the project, especially since Suriname’s credit rels of gas condensate and 1.4 trillion cubic feet
ratings have recently been downgraded. (39.65bn cubic metres) of natural gas.
“We have to make sure that the funding is in Since then, Apache and Total have also found
order and that we are ready, and for that we need oil, condensate and gas in the Sapakara West-1
the state because we can’t do it alone,” she stated. and Kwaskwasi-1 wells. They are preparing to
The total cost of developing Block 58 is pro- spud a fourth exploration well at the Keskesi sec-
jected to reach $6-7bn. The NOC would have to tion of Block 58 and are optimistic about their
raise $1.0-1.5bn to cover the cost of a 20% stake. chances of finding more hydrocarbons, espe-
Speaking at the same press conference, cially since Keskesi lies along the same trend as
Suriname’s new president, Chan Santokhi, told the other three fields. ™

The total cost of developing Block 58 is set to reach $6-7bn (Image: Staatsolie)

P14 www. NEWSBASE .com Week 31 06•August•2020