REG-TotalEnergies SE Suriname: TotalEnergies Announces Final Investment Decision for the GranMorgu development on Block 58

TotalEnergies SEAnnouncement

01/10/2024 14:45

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Suriname: TotalEnergies Announces Final Investment Decision for the GranMorgu
development on Block 58

 

Patrick Pouyanné, Chairman and CEO of TotalEnergies (Paris:TTE) (LSE:TTE)
(NYSE:TTE), met today in Paramaribo with His Excellency Chandrikapersad
Santokhi, President of the Republic of Suriname, and Annand Jagesar, CEO of
Staatsolie Maatschappij Suriname N.V., Suriname’s National Oil Company, to
announce the Final Investment Decision (FID) for the “GranMorgu”
development located on offshore Block 58.

“GranMorgu” means both “new dawn” and “Goliath grouper” in Sranan
Tongo, the local language.

A landmark project in a prolific basin

The GranMorgu project will develop the Sapakara and Krabdagu oil discoveries,
on which a successful exploration and appraisal campaign was completed in
2023. The fields are located 150 km off the coast of Suriname and hold
recoverable reserves estimated at over 750 million barrels.

The project includes a 220,000 barrels of oil per day Floating Production
Storage and Offloading (FPSO) unit, that replicates a proven and efficient
design. Total investment is estimated at around $10.5 billion and first oil is
expected in 2028. The GranMorgu FPSO is designed to accommodate future
tie-back opportunities that would extend its production plateau.

TotalEnergies is the operator of Block 58 with a 50% interest, alongside APA
Corporation (50%). Staatsolie has announced its intent to exercise its option
to enter the development project with up to 20% interest. Partners agreed that
Staatsolie will contribute to the project from FID and will finalise its
interest before June 2025.

Leveraging best-in-class technologies to minimize GHG emissions

GranMorgu leverages technology to minimize greenhouse gas emissions, with a
scope 1 and 2 emissions intensity below 16 kg CO(2)e/boe thanks in particular
to:


 * an all-electric FPSO configuration, with zero routine flaring and full
reinjection of associated gas into the reservoirs;

 * an optimized power usage with a Waste Heat Recovery Unit and optimized water
cooling for improved efficiency;

 * the installation of a permanent methane detection and monitoring system
relying on a network of sensors.

Maximising local content for the benefit of Suriname economy and people

Significant investments will be made in local content and job creation and
will contribute to the development of the Surinamese economy. Paramaribo will
serve as the primary hub for administrative, support and logistic activities.
Local companies will be involved in logistics, well services, as well as the
installation and operations of the subsea systems and the FPSO. Overall local
content is estimated to be more than 1 B$ and more than 6000 jobs (2000 direct
and 4000 indirect and induced) are expected to be created in Suriname.

Alongside the FID announcement, TotalEnergies and its partner APA signed a
Memorandum of Understanding with the Health Ministry to support the
rehabilitation of two mother and child hospitals in Paramaribo.

“I am very pleased to launch today the GranMorgu project alongside our
partners Staatsolie and APA and I sincerely thank the State of Suriname for
its strong support. Building on TotalEnergies’ pioneering spirit, this
landmark project marks the first offshore development in the country and
capitalizes on our extensive expertise in deep offshore innovation. Launched
only a year after the end of appraisal, GranMorgu fits with our strategy to
accelerate time-to-market and develop low-cost and low emission oil projects,"
said Patrick Pouyanné, Chairman and CEO of TotalEnergies. "We look forward to
continuing our fruitful collaboration with Staatsolie to deliver a
transformative project for Suriname’s economy.”

“Suriname and its people welcome and appreciate the final investment
decision of Total Energies and APA Corporation regarding Block 58 with
Staatsolie Suriname NV. We consider this a historic and milestone occasion,
creating significant opportunities and revenue prospects for Suriname, as well
as attracting investors worldwide”, said His Excellency Chandrikapersad
Santokhi, President of the Republic of Suriname. “This important decision
will boost our domestic capabilities and investments and have a major impact
on local content opportunities. Suriname is committed to a strong and loyal
partnership and expects that the offshore oil and gas development will take
off in compliance with environmentally regulations and standard.”

“The FID is a historic milestone in Suriname's oil and gas industry. What
seemed like a distant dream is becoming a reality. This will be the largest
investment ever in our country. Deliberations with TotalEnergies were always
constructive and we thank them for the cooperation to arrive at this moment.
This project will yield significant income for Suriname and needs to lead to
better living standards for every citizen of Suriname. We are convinced, based
on the measures taken and the track record of TotalEnergies, that the
GranMorgu project will have a worldclass operational and environmental
performance. Staatsolie congratulates the Surinamese society with this special
moment”, said Annand Jagesar, CEO of Staatsolie.

***

About TotalEnergies

TotalEnergies is a global integrated energy company that produces and markets
energies: oil and biofuels, natural gas and green gases, renewables and
electricity. Our more than 100,000 employees are committed to provide as many
people as possible with energy that is more reliable, more affordable and more
sustainable. Active in about 120 countries, TotalEnergies places
sustainability at the heart of its strategy, its projects and its operations.

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