Sources: TotalEnergies will sign a $10 billion deal for Suriname's offshore project

Ank Kuipers and America Hernandez

Four sources familiar with the project said that TotalEnergies, a French oil company, will sign the final investment decision on Tuesday, for the first offshore oil and natural gas development of Suriname. The development is expected to cost more than $10 billion.

Gran Morgu, located in Block 58 140 km off of the coast of South America, has estimated recoverable reserves of 700 million barrels. This is comparable to ExxonMobil’s 11 billion barrel discovery in the neighbouring oil-rich Guyana.

Annand Jagesar told reporters last week that the FID will be implemented in the first quarter of 2024.

The sources confirmed that TotalEnergies' Chief Executive Patrick Pouyanne would fly to Suriname to attend the FID, before traveling to New York on Wednesday for the company’s Investor Day. They declined to identify themselves because the details hadn't been made public.

Jagesar said that last week it was "highly probable" that Staatsolie will be able to raise the funds necessary to exercise its option of buying a 20% stake, which is split currently 50-50 by operator TotalEnergies APA Corporation and Texas-based APA Corporation.

APA and Staatsolie did not respond immediately to requests for comments outside of business hours. Reporting by America Hernandez, Paris Editing By Toby Chopra & David Goodman

(source: Reuters)