Suriname is on the brink of a significant transformation as its offshore oil boom prepares to become a reality, despite facing years of delays and economic challenges. The country, located in northeastern South America, has long observed the drilling success of its neighbor Guyana, which has recently emerged as a key player in the global oil market. Suriname’s government in Paramaribo has pursued similar opportunities, but progress has often been hindered by uncertainty and financial crises.
The political landscape shifted dramatically when President Chandrikapersad Santokhi, a former police commissioner, lost office in July 2025. His administration was marked by economic austerity measures mandated by the International Monetary Fund (IMF), aimed at addressing a deep financial crisis that escalated after the COVID-19 pandemic. The austerity program, which included cutting government spending and removing energy subsidies, sparked protests in early 2023 as living costs surged. Nearly one-fifth of Suriname’s population now lives below the poverty line, highlighting the urgency of economic recovery.
In March 2025, the IMF noted positive signs in Suriname’s economy, stating, “The objectives of the program have been broadly achieved. The economy is growing, inflation is receding, public debt is declining, and investor confidence is returning.” Despite this progress, challenges remain, including the need for improved fiscal discipline and regulatory transparency.
Suriname’s potential oil resources have been the focus of attention since the first discovery in January 2020 at the Maka Central-1 well in Block 58. Subsequent discoveries, including the significant Krabdagu find in 2022, have confirmed an estimated 750 million barrels of recoverable oil. The oil is characterized as light and sweet, making it attractive in the current market focused on low-emission fuels.
The path to production faced hurdles, as TotalEnergies postponed plans for development due to exploration setbacks, including dry wells and inconsistent seismic data. However, by October 2024, TotalEnergies and APA Corporation announced a $10.5 billion final investment decision (FID) for the development of the Sapakara and Krabdagu discoveries, with the first oil expected in 2028.
GranMorgu Project on Track for 2028
The GranMorgu project, located 93 miles offshore from Paramaribo, will consist of a drillship and a semi-submersible rig equipped with 16 production wells and 16 injector wells. The facility aims for a production capacity of 220,000 barrels per day and will include storage for up to 2.1 million barrels. It is projected to yield significant quantities of both oil and natural gas, with daily outputs estimated at 450 million cubic feet of gas.
TotalEnergies has committed to low-carbon extraction methods for the project. The company plans to utilize an all-electric Floating Production Storage and Offloading (FPSO) vessel, aiming for minimal emissions during operations. GranMorgu is expected to emit less than 16 kilograms of carbon per barrel of oil equivalent, positioning it competitively in a market increasingly focused on sustainability.
Suriname’s national oil company, Staatsolie, has secured a 20% stake in GranMorgu, valued at approximately $2.4 billion. This investment is part of Staatsolie’s strategy to triple its revenue to $1.8 billion by the end of the decade. Estimates suggest that GranMorgu could generate between $16 billion and $26 billion in revenue over its operational life, significantly exceeding Suriname’s projected GDP of $4.46 billion for 2024.
As Suriname prepares for its oil boom, the potential for economic recovery remains intertwined with political stability and effective governance. The incoming administration under President Jennifer Geerlings-Simons faces the critical challenge of leveraging this opportunity to improve living standards for its citizens while addressing the legacy of economic hardship. The successful implementation of the GranMorgu project could provide the much-needed financial boost to help Suriname navigate its path towards a more prosperous future.
