Offshore Suriname block needs further exploration to affirm resource potential
Offshore staff
LONDON – Apache Corp./Total’s Maka Central oil discovery offshore Suriname could generate more than $50 million in annual in revenues to the Surinamese government, according to GlobalData.
Oil and gas analyst Gregory Bosunga said: “Due to a lack of onshore processing and export infrastructure in the Guyana-Suriname basin, development through an FPSO will be the most optimal option.
“Maka Central reservoirs are located at the same level as the nearby Stabroek play – around 400 ft (122 m) – so it is reasonable to assume a potential of 300 MMbbl of gross recoverable oil.
“Assuming there will be similar development and operating costs to Liza Phase 1, to breakeven from the estimated total costs of $7.2 billion, Maka Central will need minimum recoverable resources of 213 MMboe at oil prices of $56/bbl.
The surrounding offshore block 58 features seven distinct play types, with more than 50 prospects identified. But comprehensive exploration of this large block will be needed, GlobalData claimed, with further drilling and testing needed to appraise the resources and productivity of the reservoirs.
Bosunga said: “It is far too early to know whether this new discovery by Apache and Total might eventually bring a similar positive financial impact for Suriname as the Stabroek block is expected to do for Guyana.
“Nonetheless, the initial indicators are encouraging and it is worth noticing that Apache has the ability to retain the entirety of block 58 with no relinquishment requirements until June of 2026.”
03/19/2020
