Recently Qatar Energy has acquired a major stake in Chevron’s Suriname offshore block projects. The Qatar energy producing company will be taking 20 percent of stakes in the Suriname’s offshore oil field. It is going to be a historical deal for the South American country. Suriname is located at the northeastern cost of South America and it is for long considered to be a comparatively poor country because of colonial rule by the Dutch.
For being colonized for hundreds of years and following poverty in the nation, the natural resources were not discovered at their fullest extent. It is still remain to be discovered to yet. But in recent years, according to the official survey reports by consultancy company Wood Mackenzie, the South American country has around 2.4 billion barrels of oil and more than 12.5 trillion cubic feet of gas in the reserves. As of now the country has 6 offshore and onshore oil fields and most of them are controlled by the American company Chevron.
Chevron holds Major Stakes in Suriname Offshore Oil Field
The Qatar energy groups will be holding major stakes in the company. In 2024, the company has taken over the 20 percent of stakes in chevron operated Suriname offshore oil fields. Still the major section is controlled by Chevron which is holding around 40 percent of the offshore oil fields stakes along with the Paradise Oil Company which is an affiliate of Suriname’s state oil firm Staatsolie. The Paradise oil company has remaining 40 percent of stakes in the Suriname’s oil projects.
The Chevron was established by the Business Standard and Berkshire Hathway holds 9 percent of major stakes in the company. It is basically originated in the United States of America in largely works in the oil processing and crude oil extraction. As the Middle East region is being exploited due to over extraction, the oil and gas producing companies are looking for more sustainable and less explored countries so that the energy demands of the global operations can be met.
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As the Middle East region for long has been exploited due to increasing demand of the oil and especially the black energy, more sustainable options must be explored so that global energy demands can be met at quite moderate prices for the consumers. Suriname being surrounded by the Caribbean ocean, along with other major South American countries such as Guyana allegedly has bigger black energy reserves and now it is high time, the focus must be shifted from Middle Eastern country and OPEC countries to the South American countries.
It will be environmentally more friendly and conducive for human survival. It is be a win-win situation for the investors and the origin countries. Suriname for long has been considered a significantly poor country which does not global facilities due to lack of utilization of resources. The natural resources have not been utilized properly and they have not reached to their full extent yet. For all of these reasons, the companies who have established are making all time big investments.
How the Pact will Benefit the QatarEnergy?
The pact of Qatar Energy to hold 20 percent of stakes in the Chevron’s Suriname offshore oil field will enable the company to get engaged in production sharing contract for boosting its participation in the budding oil producing country. The current oil output in Suriname is largely focused on onshore production but various deepwater fields have been discovered in the country’s waters since 2019. From 2029, the country will be producing barrels of oil per day.
Not only Chevron but many oil and gas producing countries have been making big investments as TotalEnergies along with APA Corp will be investing $9 billion in block 58 aiming to begin in 2028. It is considered to be the most promising oil and gas project Suriname has ever signed.
Adjacent to block 58 is the Exxon Mobil’s massive Stabroek block where 11 billion barrels of recoverable oil and gas have been discovered. The QatarEnergy’s CEO Saadal-Kaabi said in a press statement that “this agreement with Chevron highlights our continued commitment to exploring promising basins of Suriname and marks an exciting new partnership with American oil processing company. It will be a historical investment in the international upstream sector”.
It can undoubtedly be stated that the QatarEnergy’s pact with Chevron to invest in Suriname offshore oil field will be going to prove historical for both the nations and the investors as well. it will definitely be proved a milestone in alleviating the poverty of the South American country.
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