Large oil reserve discovered off the coast of Suriname

Sherrica Thompson

Staff Writer

#Suriname, August 26, 2022 – Oil miners have discovered another large oil reserve off the coast of Suriname in Block 53.  The announcement was made by the American oil company, APA Corporation (APA) and Suriname’s Staatsolie on Tuesday.

The oil was found in the Baja-1 well, which was drilled to a depth of 5,290 meters and encountered 34 meters of net oil payment. Since January 2020, five successful discoveries were made in Block 58.

Preliminary analyses indicate light oil with a gas-to-oil ratio of 1600 to 2200 standard cubic feet per barrel in a good quality reservoir.  The discovery at Baja-1 is from the same deposition system as the Krabdagu discovery, 11.5 kilometres to the west at Block 58.

President and Chief Executive Officer of APA, John J. Christmann, commented on the oil discovery.

“Our success at Baja marks the 6th oil discovery we have participated in offshore Suriname and the first on Block 53,” said Christmann.

He also noted that; “This result confirms our geologic model for the Campanian in the area and helps to de-risk other prospects in the southern portion of both Blocks 53 and 58.”

APA said it recently received regulatory approval regarding an amendment to the Block 53 Production Sharing Contract (PSC) with Staatsolie, which provides options to extend the exploration period of the PSC by up to four years.

The company is currently progressing through the formalization of the election of the first one-year extension, for which all work commitments are complete.

In a statement about the latest oil discovery, the President of Suriname, Chandrikapersad Santokhi, said, “Suriname is another step closer to commercial exploitation.”

He added that the results as presented “make us stand with both feet on the ground at the same time, while the dot on the horizon takes on more and more solid shapes”.

The authorities said the results from Block 58 point to the complexity and dynamics of the industry. They also noted that the results showed a water reservoir in this block. This gives a good indication of the enormous potential that Suriname has as a player in the field of oil and gas.

The government is awaiting further information from the oil companies. In the meantime, intensive discussions are being held between Staatsolie and the foreign companies about the first development in the sea area to arrive at the ‘so-called’ final investment decision.