It seems like untold riches and wealth are about to transform two of South America’s once poorest, neighboring countries.
Since 2015, Guyanese were over-hyped about the promise of staggering oil wealth – a prospect which is pretty much still in the pipeline. In December 2019, Guyana exported “first oil” under the David Granger Administration amidst much celebration and applause. Nearly four years later, Guyana is now pumping approximately 500,000 barrels of crude per day making it the world’s fastest growing economy.
But it seems like, very soon, Guyana’s eastern neighbor will steal its crown as the world’s fastest growing oil economy. Suriname is estimated to have more than 30 billion barrels of oil and drilling has already started. With a population far less than Guyana, the former Dutch colony is also about to steal Guyana’s coveted title of having the highest proven oil reserves “per capita.”
Staatsolie, Suriname’s state oil company, announced on December 15, that it has signed three production sharing contracts (PSC) for the offshore deepwater blocks 63, 64, and 65. The blocks were part of the Demerara bid round held from November 2022 to May 2023. Staatsolie said the contracts from the bids were signed after negotiations with selected partners and that the Demerara bid round was part of its strategy to sign PSCs for as many offshore areas as possible.
In Suriname, TotalEnergies operates Block 58 (50%) where five discoveries have been made and where development studies are in progress, with the objective of sanctioning a 200,000 b/d oil project by end 2024.
The residents of both Guyana and Suriname can expect to see explosive ecomomic infrastructural development in the years ahead.
Some information for this article was gleaned from oilnow.gy.