“A key component of feasibility is the guarantee of a tax-free period of 10 years from the start of production. This is also stipulated in the letter of agreement, with government approval,” Staatsolie said at the time. Now, Exxon is leaving but Petronas will continue the exploration work on the discovery.

Exxon does not seem to have been as lucky in Suriname as it has been in neighboring Guyana but other companies have struck commercial volumes of hydrocarbons off the Suriname coast. TotalEnergies and APA Corp. have made five high-quality oil discoveries there, in Block 58, since 2020. The most recent discovery was the Krabdagu wildcat, completed in February 2022, while the most recent exploration well drilled, which came up dry, was in November that same year.

Earlier this month, TotalEnergies and APA made the final investment decision on Block 58, committing as much as $10.5 billion for the development of its oil and gas resources. The oil in place discovered so far has been estimated at 700 million barrels. Some observers see this as Suriname’s following in the footsteps of its neighbor Guyana in turning into a hotspot for the energy industry.

By Irina Slav for Oilprice.com

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