NOC raising funds to cover its share of costs for TotalEnergies-led $12.2B oil project off Suriname

Suriname’s national oil company (NOC) Staatsolie Maatschappij Suriname (Staatsolie) is taking action to secure the money required to cover its part of the development costs for the first-ever offshore oil field in Suriname, which is operated by France’s energy giant TotalEnergies.

Based on the production sharing contract for Block 58, Staatsolie has the right to participate up to a maximum of 20% when it comes to the development of Suriname’s first oil field project, for which a final investment decision (FID) was disclosed by TotalEnergies and its partner, APA Corporation, in the fourth quarter of 2024.

As a result, the NOC decided to participate in the development and contemplated various options to finance its participation, including a bond issuance in 2025, as the financing requirement was estimated to exceed $1.8 billion. The bond issuance was planned for January 2025 and anticipated to be closed in March.

In line with its plans, Staatsolie launched a new bond on January 31, 2025, to raise at least $250 million and €50 million to support its participation in the development of the GranMorgu offshore oil field in Block 58. The Staatsolie Bond 2025-2033, which is available in both dollars and euros, takes effect on March 23, 2025, and has an eight-year term.

While the interest rate is set at 7.75% for the U.S. dollar bond, it is 7.25% for the one in euros. Since investors can participate from $100 or €100, it is accessible to many people in Suriname. For larger investors residing in Suriname, Curaçao, or Sint Maarten, a denomination of $30,000 is available. The subscription period runs February 3-25, with allocation on March 10.

Therefore, payments can be made March 10-18. De Surinaamsche Bank (DSB) is the lead arranger for this bond issuance and the bonds will be publicly tradable on the Dutch Caribbean Securities Exchange (DCSX) and the Suriname Stock Exchange (SSX).

As Staatsolie will take up to a 20% stake in the GranMorgu field and the total investment for the project is estimated at $12.2 billion, the firm’s share amounts to $2.4 billion. Thanks to the proceeds from this bond issuance, the company will finance its portion, reducing the need for bank loans, as it also set aside cash reserves for the GranMorgu investment.

Aside from this, the next key objective of the latest bond issuance is to refinance the Staatsolie Bonds 2020-2025 and 2020-2027, which previously raised $195 million to support the 2020-2027 investment program. In the past three years, the NOC’s contribution to Suriname’s GDP averaged 9.5%, while its share in government revenues stood at around 32%.

“GranMorgu marks a new beginning for the nation. With this investment, Staatsolie is taking a major step toward realizing its vision: ‘Energizing a bright future for Suriname.’ The success of Staatsolie’s three previous bond issuances proves that confidence in our own capabilities is the foundation of our strength and stability,” the company underlined in its statement.

TotalEnergies picked SBM Offshore and Technip Energies to take care of work related to a floating production, storage, and offloading (FPSO) for the oil development project off the coast of Suriname, shortly after handpicking Scotland’s ADC Energy for the rig selection process.

Located within Block 58, around 150 kilometers off Suriname’s coast, the GranMorgu project is currently anticipated to achieve first oil in 2028 by developing the Sapakara and Krabdagu oil discoveries with recoverable reserves estimated at over 750 million barrels in water depths between 100 and 1,000 meters.

After TechnipFMC got a $1 billion contract for the project, Saipem won a $1.9 billion deal, thus, both players will work on TotalEnergies’ GranMorgu oil development.