TotalEnergies has taken the final investment decision (FID) for the GranMorgu project, which will be developed in the North Atlantic Ocean, off the coast of Suriname, with an estimated investment of around $10.5bn.
The project will develop the Sapakara and Krabdagu oil discoveries in Block 58, following a successful exploration and appraisal campaign completed in 2023. The recoverable reserves in these fields are estimated to exceed 750 million barrels.
The development includes a floating production storage and offloading (FPSO) unit, capable of producing 220,000 barrels of oil per day.
According to TotalEnergies, the design of the FPSO replicates a previously proven and efficient model, with first oil production expected in 2028.
The GranMorgu FPSO will be capable of accommodating future tie-back opportunities, which could extend the production plateau.
TotalEnergies chairman and CEO Patrick Pouyanné said: “Building on TotalEnergies’ pioneering spirit, this landmark project marks the first offshore development in the country and capitalises 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.”
TotalEnergies holds a 50% interest in Block 58, operating in partnership with APA, which also holds 50%.
Staatsolie, Suriname’s national oil company, has declared its intention to exercise an option to acquire up to a 20% stake in the project. It was agreed by the partners that Staatsolie would contribute from the FID and will finalise its interest by June 2025.
Staatsolie CEO Annand Jagesar said: “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.”
The GranMorgu project will employ technology aimed at reducing greenhouse gas emissions. Scope 1 and 2 emissions intensity is expected to be below 16 kg CO2e/boe, achieved through several measures. These include an all-electric FPSO configuration with zero routine flaring and full reinjection of associated gas into the reservoirs.
The project will also utilise an optimised power system with a waste heat recovery unit and improved watercooling efficiency. Additionally, a permanent methane detection and monitoring system will be installed, relying on a network of sensors.
In December 2023, TotalEnergies, alongside its partners QatarEnergy and Petronas, executed a production sharing agreement with Staatsolie. The contract pertains to the exploration and potential development of Block 64.
This block was allocated to TotalEnergies and its consortium partners during Suriname’s 2022-2023 Bid Round. As the designated operator, TotalEnergies will hold a 40% interest in Block 64, while QatarEnergy and Petronas will each retain a 30% share.
Block 64, which spans 6,262km, is located approximately 250km off the Surinamese coast.
