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Suriname revises 2020 oil-drilling programme due to falling prices

Suriname’s State-owned oil company Staatsolie has revised its drilling campaign for this year from 95 wells to 30 due to the international oil price fall.

In an update, Staatsolie said most of the 30 wells entail infill drilling in a bid to maintain output of 16,500 barrels per day. The national oil company, in addition, reduced the programme’s budget to US$20mn.

Last year, the Surinamese oil company spudded 101 wells in the Tambaredjo and Tambaredjo Northwest producing onshore fields.

The national flag of Suriname
(Photo: caricom.org)

Although Staatsolie had planned to drill 117 wells, low water levels due to drought prevented access to drilling sites, the State operator explained.

This year, however, the company plans to implement polymer flooding on a large scale at Tambaredjo to keep production stable after using the enhanced oil recovery technology as a pilot project.

Suriname’s State-owned oil company Staatsolie has revised its drilling campaign for this year from 95 wells to 30 due to the international oil price fall.

Noble’s Sam Croft traverses waters offshore Suriname after exploring the Sapakara West-1 well Block 58. (Photo: Faircroft)

In an update, Staatsolie said most of the 30 wells entail infill drilling in a bid to maintain output of 16,500 barrels per day. The national oil company, in addition, reduced the programme’s budget to US$20mn.

Last year, the Surinamese oil company spudded 101 wells in the Tambaredjo and Tambaredjo Northwest producing onshore fields.

Although Staatsolie had planned to drill 117 wells, low water levels due to drought prevented access to drilling sites, the State operator explained. This year, however, the company plans to implement polymer flooding on a large scale at Tambaredjo to keep production stable after using the enhanced oil recovery technology as a pilot project.

We are preparing for the moment when a decision should be made to invest in participation in offshore oil production in Block 58, together with Apache and Total.”

— Staatsolie Head of Financing and Investor Relations Angela Profijt

New developments

The company also disclosed that earlier this year, it performed major maintenance work on the 15,000b/d Tout Lui Faut refinery took. As a result, the work will facilitate the safe and reliable operation of the plant for four years

At the end of 2015, the State-owned entity commissioned the expansion of the refinery to double its capacity.

One three Noble oil-drilling vessels is photographed here in the Guyana-Suriname basin during an exploration. (Photo: Vessel Finder)

In terms of Staatsolie’s engagement in offshore activities, Head of Financing and Investor Relations Angela Profijt commented, “We are preparing for the moment when a decision should be made to invest in participation in offshore oil production in Block 58, together with Apache and Total,” Staatsolie.

In recent weeks, Fitch downgraded Suriname’s long-term foreign currency IDR to ‘C’ and Moody’s lowered the country’s sovereign credit rating to ‘Caa3’.