ExxonMobil (XOM) Is In Discussions To Merge Its Gas Development Projects

(CTN News) – ExxonMobil Corporation XOM and TotalEnergies TTE are considering partnering with Staatsolie, the Suriname national oil company, to develop natural gas fields along the maritime border between Guyana and Suriname.

ExxonMobil is already making significant progress in Guyana, to the west of Suriname, by leading a consortium that has already enabled the country’s oil production to reach 650,000 barrels per day, which is more than double its previous production.

By developing gas fields in Guyana, this consortium intends to enhance the country’s energy revenues by providing a domestic supply of fuel, as well as exporting the fuel to other countries. Investing in more than 11 billion barrels of recoverable oil,

ExxonMobil’s consortium has announced six projects primarily focused on oil exploration in Guyana.

It is anticipated that a seventh project will focus on gas, which is an indication that the region’s oil and gas industry is ready to expand its gas exploitation capabilities. In Suriname, and in two of ExxonMobil’s gas fields, TotalEnergies and APA Corporation discovered similar gas fields that remind us of ExxonMobil’s discoveries in Guyana.

As part of TotalEnergies and APA Corp’s partnership, Block 58, which is located offshore Suriname, is being highlighted as a potential oil production site by the year 2028.

In spite of these challenges, the financial forecast for the project appears to be challenging, given that drilling costs have doubled in the past few years.

In spite of these obstacles, Suriname’s gas sector appears to be a promising one, especially since Petronas and ExxonMobil have both been involved in Block 52’s exploration program.

A number of companies, including Petronas, have hinted at the possibility of developing liquefied natural gas (“LNG”) projects under favorable fiscal arrangements with Staatsolie in the near future.

Ahead of becoming a regional gas hub, Suriname is working hard to attract foreign investment into its burgeoning energy sector as part of its broader strategy to attract foreign investment.

Despite the fact that Suriname anticipates the first major offshore oil production to begin sometime around the year 2021, it may be able to accelerate its journey towards establishing a substantial footprint in the energy market through collaborations with industry giants like ExxonMobil and TotalEnergies.

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