TotalEnergies and partner APA have approved the $10.5 billion GranMorgu development in Block 58 offshore Suriname, with first oil expected in 2028.
Both companies announced final investment decision (FID) on the project–Suriname’s first–on 1 October.
GranMorgu–which means both “new dawn” and “Goliath grouper” in the local Sranan Tongo language–will develop the Sapakara and Krabdagu oil discoveries. Block 58 operator TotalEnergies said the fields jointly hold estimated recoverable reserves of more than 750 million bbl.
TotalEnergies and Block 58 partner APA, formerly known as Apache, carried out an exploration and appraisal campaign on the discoveries in 2023.
Suriname has been home to nine offshore discoveries since 2019, and the GranMorgu final investment decision (FID) represents the first project to move forward. Because Suriname borders Guyana, where ExxonMobil has had significant exploration success in the Stabroek block, hopes have been high for Block 58. While exploring the block, however, TotalEnergies has encountered obstacles, such as higher gas volumes than expected as well as a “mismatch” between seismic data and well results, which delayed development plans.
Development Plan
In September 2023, when TotalEnergies said it was launching studies for the Block 58 development, it estimated the project would cost about $9 billion; by FID, the investment had grown to $10.5 billion.
The Sapakara and Krabdagu fields, located in water depths between 100 and 1000 m, will be produced through a system of subsea wells connected to a floating production, storage, and offloading (FPSO) vessel capable of handling 220,000 BOPD. It will be moored 150 km (93 miles) off the Suriname coast.
The all-electric FPSO replicates a proven design and will be able to accommodate future tieback opportunities to extend production, TotalEnergies said.
In June, SBM Offshore said it had, in partnership with Technip Energies, reserved a Fast4Ward FPSO hull for the GranMorgu project. The first Fast4Ward FPSO hull was used for ExxonMobil’s Liza Unity vessel offshore Guyana.
Also in June, TotalEnergies said it would integrate water alternating gas injection technology to increase recovery and that it would use ocean-bottom-node (OBN) seismic technology to maximize resources, place development wells, and identify resource upsides. The operator said the first OBN campaign, covering 900 km2, would happen this year.
According to TotalEnergies, GranMorgu scopes 1 and 2 emissions intensity will be below 16 kg CO2e/BOE, partly due to efforts to maximize local content. In addition to using an all-electric FPSO, the project is planned with zero routine flaring and full reinjection of associated gas into the reservoirs. It will also optimize power usage with a waste-heat-recovery unit and deepsea water cooling for improved efficiency. The project will also include installation of a permanent methane detection and monitoring system that relies on a network of sensors.
In addition to reaching FID for GranMorgu, APA said the partners have retained optionality for further exploration in Block 58, which will allow them to fully explore the remaining potential of the block in the proven trend, as well as untested plays. Previously, the partners have discovered oil in Block 58 at Maka Central, Kwaskwasi, and Keskesi.
TotalEnergies operates Block 58 with 50% interest on behalf of APA Corporation with 50%. Staatsolie Maatschappij Suriname N.V, the Suriname national oil company, intends to exercise an option to enter the development project with up to 20% interest and will finalize its interest before June 2025.
Staatsolie said it will participate at 20% but that its first two payments will be made on a prearranged timetable so it can organize financing or reduce its participation percentage.
“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,” Staatsolie CEO Annand Jagesar said in a press release.
