Why is taking so long to declare commerciality for Suri discoveries?
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https://oilnow.gy/featured/no-mention-of-fid-for-surinames-block-58-during-totalenergies-earnings-conference/
Block 58 has churned out a total of five discoveries thus far – at Maka Central, Kwaskwasi, Sapakara, Keskesi and Krabdagu. And though an official resource estimate has not been given, Sapakara, according to APA Corporation, holds 400+ million barrels.
No clear reason has been given for the FID hesitancy. Officials, when questioned about it, or a timeline of when to expect one, give different answers.
Total’s Managing Director, Philippe Blanchard had said that the company is awaiting the results of the other wells. And more recently, Chief Executive, Patrick Pouyanne attributed the delays to a “lack of confidence in understanding the reservoirs discovered to date, driven by a mismatch between what seismic data shows and the results of the delineation wells.”
Director of Americas Market Intelligence (AMI) Energy Practice, Arthur Deakin, said sources relate that TotalEnergies is not entirely sure how Block 58 fits into its long-term vision for its energy transition.
That’s the problem, Total have more projects than capital. Are Part of latest big discovery in Brasil. Namibia is a giant for them. Throw in the carry, Suri slipping down the ranking for them.
It is all about Tax. TTE want Suriname to align their taxation of oil industry to Guyana (before this week 10% hike).