Suriname's Staatsolie Seeks $1.5 Billion Financing for Gran Morgu Energy Project
Suriname's state-owned oil company, Staatsolie, is seeking an unprecedented $1.5 billion in bank financing to participate in the country's Gran Morgu energy project, led by TotalEnergies.
The project, located in Block 58, is Suriname's first major offshore development and has the potential to transform the country into a significant crude oil and gas producer in the region.
Staatsolie aims to partner with TotalEnergies and APA Corp in the project, which has an estimated total cost of $12.2 billion. Staatsolie's share of the investment amounts to $2.4 billion.
"We are talking to big banks in the world to finance," said Annand Jagesar, Staatsolie's managing director. "They're very eager to do it."
The company is also considering participating in a natural gas project operated by Malaysia's Petronas in Block 52. The project is expected to require around $10 billion in investment, with Staatsolie's share estimated at $2 billion.
Staatsolie's participation in these high-value offshore projects is seen as a strategic move to double the size of the company in the coming years.
The company's revenue is projected to nearly triple by 2029 to $1.77 billion. To achieve this growth, Staatsolie will need to secure additional funding in the future.
"The cash flow collected [from Block 58] will alleviate many of the financing needs," said Luiz Hayum, Upstream Research analyst at Wood Mackenzie.
The timing of the projects could work in Staatsolie's favor, as most of the expenses for Block 52 are expected to be incurred after production begins at Block 58 in 2028.