MercoPress. South Atlantic News Agency

Brazil tempted by the success of the Suriname and Guyana oil basin developments

The ex Dutch colony of Suriname, following offshore discoveries, has become a most promising oil and gas province

Exploration and development of oil and gas resources in the ex Dutch colony of Suriname, now an independent country, was the main point of the agenda addressed by Brazilian foreign minister Carlos Franca and his Surinamese peer Albert Randim, during a meeting held in Brasilia.

Suriname is not only a northern neighbor on the Caribbean of Brazil but recently has become a very promising oil province following on several discoveries offshore that have attracted some of the leading global companies.

“We talked about the recent discoveries of oil and gas in Suriname and Brazil's willingness to collaborate in the development of the industry so that it generates the necessary resources for Suriname and its people”, indicated the Brazilian minister Franca. ”We also talked about some bilateral contacts in that area which have already taken place, and I reaffirmed the willingness of Itamaraty (Brazilian foreign ministry) to coordinate missions and dialogues between corporations and Brazilian agencies with their Suriname counterparts“.

According to the Oil, Natural gas and bio-fuels Strategic Studies Institute closely linked to the Federation of Oil Workers, FUP, Suriname is emerging as a new player in South American hydrocarbons sector, amplifying together with Guyana ”world expectations as to the energy and economic potential of the region“

In Suriname the main offshore blocks have already been acquired by the large international corporations such as ExxonMobil, Statoil and Hess, through participation accords with their state company Staatolie.

At the end of July, Total Energies and Apache Corporation announced the discovery of oil close to the Suriname coast, at the Sapakara South-1 well in Block 58. ”These repeated positive results confirm our strategy, which targets large volumes of resources extracted at low development costs“, said Kevin McLachlan from TotalEnergies.

”The recent discovery of oil reserves in maritime areas from nations to the north of South America have attracted the attention of the great oil companies contributing to modify the geopolitics of the region and strengthening in this case, the significance of Guyana and Suriname as robust providers of oil“, according to Brazilian think-tanks.

Besides the geopolitical effects, the deposit found in Suriname and Guyana are feeding the expectations as to the energy potential of the Foz do Amazonas, Pará-Maranhao/Barrerinhas and Potiguar basins, located in what is identified as the Equatorial margin of Brazil. Studies from the State University of North Fluminense, based on data from the Brazilian national agency of oil, natural and bio-fuels, ANP point to similar geologic similarities between the Brazilian sedimentary basins and the two neighboring countries, a fact that according to specialists is a strong indication of the presence of oil and gas also on the Brazilian side.

”It is important to underline that on our side of the Equatorial Margin we have the same geologic context than in Guyana and Suriname and in that process, and based on the discoveries of the Equatorial Margin of those two countries, we have a great interest and urgency in knowing the potential on our side“, said ANP director Raphael Moura during a seminar for oil entrepreneurs.

”ANP is aware of the potential from the Brazilian Equatorial Margin as a catalyst for regional development, particularly to the north and northeast of Brazil. Who knows, we might be able to repeat the success of our two neighbors, Guyana and Suriname? For that we need of the joint effort and collaboration from our private oil and gas industry, academia, regulators of government policies. We need investments in research and development, and our universities have a crucial role to play in these efforts so that we can convert an activity potential into prosperity for the whole Brazilian society”, emphasized Moura.