Potential Oil Off Suriname Spurs $10B Investment

France's TotalEnergies and US-based APA Corp say they will spend $10 billion in order to extract oil off the coast of Suriname; it marks the country's largest-ever foreign investment. TotalEnergies CEO Patrick Pouyanné stated production is expected by mid-2028, with a projection of 220,000 barrels per day. The GranMorgu project is zeroing in on an area that's thought to hold 700 million barrels of oil and is adjacent to a successful ExxonMobil venture in Guyana.

"Today is a historic day for Suriname," declared President Chan Santokhi, highlighting the deal's transformative potential for the nation. TotalEnergies will collaborate with APA Corp and Staatsolie, the national oil company. Staatsolie, which will have a 20% stake, plans to raise funds through bonds issuing in 2025 and has secured an initial $175 million payment.

President Santokhi said the expected revenue boost would enhance living standards in a nation where 18% live in poverty. Suriname holds $3.5 billion in debt and is currently under a $688 million IMF restructuring program. Staatsolie's CEO Annand Jagesar remarked, "Suriname will never be the same," but cautioned against potential mismanagement, drawing parallels with Venezuela's experience. TotalEnergies says it will employ advanced technologies to minimize emissions. (This story was generated by Newser's AI chatbot. Source: the AP)