The U.S. exploration and production company APA Corporation APA and French oil major TotalEnergies SE TTE, through its subsidiary, signed a final investment decision regarding the production of 220,000 barrels of oil per day in Block 58 located offshore Suriname.
The oil production project, named GranMorgu, will include production from the Sapakara and Krabdagu oil fields, which have combined recoverable resources estimated above 700 million barrels. TTE and APA will jointly develop the GranMorgu project and tap the vast oil reserves discovered in both fields. With a total investment of $10.5 billion, the project is expected to start oil production by 2028 and to reach a daily output of 220,000 barrels of oil.
The GranMorgu project will be initiated in collaboration with TotalEnergies EP Suriname B.V.(the operator of Block 58), holding 50% stakes and APA Suriname 58 Corporation LDC, keeping the remaining 50%. Suriname’s national oil company, Staatsolie, may exercise its option to buy a 20% stake in the project provided it succeeds in raising the funds.
The production and development of the Sapakara and Krabdagu fields, located between 100 and 1,000 meters, will take place by drilling a total of 32 wells connected to a Floating Production, Storage and Offloading (FPSO) unit, located approximately 150 km off the Suriname coast. The FPSO is designed with such advanced technology that it can accommodate future development opportunities too.
An important feature of the GranMorgu project is its commitment toward a clean environment. The project will use innovative technology to reduce greenhouse emissions. It is set to use an all-electric FPSO with full reinjection of associated gas. A waste heat recovery and deep-sea water cooling system will be used for greater efficiency, and a methane detection and monitoring system will be installed to reduce the environmental impact.
The joint venture (JV) between the companies is expected to serve as a proposal for future developments. The government of Suriname is committed to securing larger revenues through higher royalties and taxes and signing bonuses for its people that can be reinvested in healthcare and local content.
TotalEnergies’ CEO, Patrick Pouyanne, stated that their strategy under the Suriname project is to focus on low-cost and low-emissions upstream projects. He further mentioned that the project aims to achieve oil production at a cost of less than $20 per barrel.APA also looks forward to meeting the world’s demand for affordable and reliable energy.
On successful completion of phase-1 of the project, both the companies will plan to further exploring Block-58 and tapping the remaining potential in proven manners.
APA Corp. is one of the world's leading independent energy companies, engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Currently, APA has a Zacks Rank #3 (Hold).
Having its operations in countries across five continents, TotalEnergies SE is among the top five publicly traded global integrated oil and gas companies.Currently, TTE has a Zacks Rank #5 (Strong sell).
Investors interested in the energy sector might look at some better-ranked stocks like Archrock AROC and PEDEVCO Corp. PED. At present, Archrock and PEDEVCO Corp. sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in the United States, Archrock, Inc. is a provider of natural gas contract compression services as well as a supplier of aftermarket services of compression equipment. The Zacks Consensus Estimate for AROC's 2024 earnings indicates 50.72% year-over-year growth.
PEDEVCO Corp. is an oil and gas company, engaged in the acquisition and development of energy projects in the United States and Pacific Rim countries. Over the past 30 days, the Zacks Consensus Estimate for PED's 2024 earnings has improved by 33.3%.
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