The Guyana-Suriname Basin is quickly emerging as one of the most prolific offshore oil regions in the world.
Guyana has had tremendous success in its ventures with Big Oil in the region.
Suriname is looking to follow in Guyana’s footsteps though it has suffered a few setbacks along the way. The offshore Guyana-Suriname Basin emerged in 2019 as one of the world’s most exciting drilling frontiers. While the U.S. Geological Survey estimated that the basin contained mean undiscovered oil resources of 15 billion barrels, disappointing exploration results saw international energy companies shun the geological formation. It wasn’t until 2015 when a consortium led by ExxonMobil made the world-class Liza oil discovery in the 6.6-million-acre Stabroek Block offshore Guyana. Since then, Exxon has made a swathe of high-quality oil discoveries, 33 since 2015, in the block, which is estimated to contain recoverable oil resources of at least 11 billion barrels. Those discoveries have been a boon for Guyana’s economy, which expanded by a whopping 43.5% in 2020, when the COVID-19 pandemic caused most economies to contract, and then by 19.9% in 2021. The former British colony’s oil-driven economic miracle is gaining momentum, with the IMF forecasting GDP growth of 57.8% for 2022. Neighbouring Suriname, which saw its economy hit hard by the pandemic with GDP plunging 15.9% during 2020, is hungrily eyeing the oil wealth held in its territorial waters.The Guyana-Suriname Basin is set to become one of the world’s most prolific offshore oil-producing regions, especially after it is considered that the USGS grossly underestimated the volume of crude oil contained in the basin. The combined total of the 11 billion barrels found in the Stabroek Block and the potential 6.5 billion barrels believed to be in Block 58 offshore Suriname is far greater than the USGS’s May 2001 estimate of 15 billion barrels of mean undiscovered oil resources held by the basin. The latest news concerning the ongoing exploration and appraisal of offshore Suriname point to it holding tremendous oil wealth like neighbouring Guyana. A series of quality oil discoveries have already occurred in Block 58 offshore Suriname. U.S international driller, Apache, along with 50% partner French oil supermajor TotalEnergies, announced the first discovery in Block 58 in January 2020. The partners then announced a further four exploration discoveries with the latest occurring during February 2022.
