TotalEnergies CEO Patrick Pouyanne says the high gas content in its discoveries offshore Suriname makes development of the field “a little more complex” as it cannot be flared and would need to be barrelised.
TotalEnergies and Apache have made four discoveries in the block which is just across the maritime border from ExxonMobil’s prolific 9B barrel Stabroek Block.
Speaking to Energy Intelligence’s Noah Brenner at the Energy Intelligence Forum, Pouyanne said the gas content was quite high in the reservoirs and he went on to suggest discussions at some point with both Suriname and its neighbour Guyana, presumably about off taking the gas.
Pouyanne: “We have found a lot of hydrocarbons in Suriname, a lot of oil and gas which makes the development a little more complex ... We would like to launch as quickly as possible a First Oil development in order to get some revenues... I would say the gas content of what we discovered is quite high so the question is what do we do with the natural gas...This may be behind the question... Domestic markets could exist but are limited….Maybe the solution is not only Guyana or Suriname but together...At this stage I would say it is premature to ask this question. We must continue to appraise, to explore. We still have interesting targets on both sides and I hope by the end of 2022 we will make a large inventory of the resources and we will be able to engage with the countries the best way to barrelise the resources ...What is true there is no way for TotalEnergies to flare the gas. We will have to find a way to barrelise the gas.. Optimistic but let’s continue to appraise and explore because we also have targets before we can sit down and speak about the best strategy for development for both countries.”
However Guyana is already moving ahead with a gas-to-shore pipeline from its Liza 1 and 2 fields as part of a venture with ExxonMobil. As for TotalEnergies’ Guyana targets Pouyanne said: “I think we are exploring Guyana and for the time being we have not been so successful unfortunately. Maybe it will come. We have some wells to be drilled.” The French major has a stake (25% stake along with Qatar Petroleum, Tullow 60% and Eco-Atlantic 15%) in Guyana’s Orinduik Block that the operator Tullow drilled in 2019 only to find non-commercial heavy oil, and in Canje (35%) ExxonMobil (35%), JHI Associates (BVI) Inc. (17.5%), and Mid-Atlantic Oil & Gas Inc. (12.5%). A 12-well drilling campaign is schedule for 2022. Also TotalEnergies has a 25% working interest in the Kanuku Block with operator Repsol (37.5%), and Tullow (37.5%).
A Suriname industry summit in June heard that the geology of the Guyana/Suriname Basin seems to point to higher gas to oil ratios (GOR) the further south-east one ventures along the Golden Lane into Suriname with one recent find confirmed as only gas. This went some way to explain suggestions for an aluminum plant and comments by Foreign Minister Albert Ramdin about Guyana and Suriname linking up with populous north eastern Brazil to create some kind of energy/economic block.
Development of Suriname’s offshore is critical to closer economic and political Guyana/Suriname relations as the countries look to become economic powerhouses in the southern Caribbean. For example a bridge across the Corentyne River between the countries is conceived as a jointly financed venture.