Staatsolie Hits US$722 million in Gross Revenue, Records US$426 million PTP

By Ndubuisi Micheal Obineme

….set to make the FID for the development in Block 58 by the end of 2024.

…launches the BlueWave Supplier Development Program for indigenous participation.

Staatsolie, a Surinamese state-owned energy, oil, and gas company, has recorded in its 2023 annual financial report a gross revenue of US$722 million, and pre-tax profit (PTP) of US$426 million.

In a statement made known to The Energy Republic, Staatsolie’s 2023 annual report showed that the gross revenues of US$722 million were a reduction, compared to US$840 million turnover in 2022, and a pre-tax profit of US$430 million recorded in 2022.

According to the company, the financial results were impacted by the lower average oil price of US$77 per barrel in 2023 (compared to US$93 per barrel in 2022), to some extent offset by bonuses received for signed Production Sharing Contracts (PSCs) with various offshore partners, as well as higher production levels and the implementation of company-wide optimization programs.

Notably, the company’s contribution (through taxes, dividends, and royalties from Staatsolie s participation in gold partnerships) to the Government of Suriname increased to US$335 million from US$320 million in 2022.

Oil and Gas Production
In 2023, Staatsolie produced 6.27 million barrels of crude oil, exceeding its target by about 200,000 barrels. In 2022, crude oil production was 6.14 million barrels.

The company said the refinery produced 3.16 million barrels of diesel and gasoline in 2023, meeting our target ahead of next year’s planned maintenance Turnaround. In 2022, the refinery produced 3.29 million barrels of diesel and gasoline.

Power Generation
Staatsolie subsidiary SPCS generated approximately 1.60 million MWh of electricity, of which 75% came from our hydroelectric plant, approximately 78,000 MWh above our target.

The thermal plant produced 425,700 MWh of electric power, which is about 110,100 MWh more than planned.

In retail operations, Staatsolie subsidiary GOw2 increased its market share from 37% to 65%. This gain was largely due to further price deregulations by the Government, giving us a competitive advantage.

Additionally, the expansion of its world-class retail network established GOw2’s presence in additional geographical areas in the country.

Commenting on the company’s 2023 financial report, Annand Jagesar, Managing Director/CEO, Staatsolie said, “We had a solid operational year, meeting or exceeding production targets in several key areas.

Milestones include:

• Completion of upstream oil extraction, processing, and storage projects that will allow us to maintain our crude production levels for years to come. We exceeded our Crude production target in 2023.
• Realizing our Refinery production is in line with the target and proper preparations for the Turnaround have already been successfully executed as of 5 April 2024.
• Exceeding our Electricity generation targets.
• Advancing the potential of our Offshore assets, including another successful bidding round in the deepwater, capped by the visit to Suriname of TotalEnergies Chairman and CEO Patrick Pouyanné.

“In 2023, there were major advancements in realizing the immense hydrocarbon potential of Suriname’s offshore. Patrick Pouyanné visited Suriname in September, where he announced the preliminary front-end design of the first production field in Block 58. TotalEnergies, as operator, leads the development in the block, along with its 50% partner APA Corporation.

“Evaluation of the two main Block 58 discoveries, Sapakara South and Krabdagu, have confirmed recoverable resources of approximately 700 million barrels of oil, sufficient for a combined development.

“There was also promising news in Block 52, with the successful discovery by Petronas in the Roystonea-1 well. Petronas plans to further appraise this opportunity in 2024 and continue to discuss with Staatsolie the potential of the gas discovery in the Sloanea-1 exploration well in Block 52. The discussion has ultimately led to a “Letter of Agreement” to the Production Sharing Contract (PSC) for Block 52, which was signed in March 2024.

“Staatsolie is eagerly looking forward to the evaluation of the Sloanea-2 gas appraisal well, which will be drilled in the second quarter of 2024. This operation will include a flow test. The intention of Petronas to explore the possibility of commercial gas development in Block 52, provides yet another validation of Suriname’s good offshore potential.

“To help local businesses participate in the country’s future offshore success, Staatsolie launched the BlueWave Supplier Development Program, in collaboration with ExxonMobil and Chevron, in 2023. Twenty-five companies have successfully participated in this Local Content initiative, preparing them to deliver goods and services to the offshore sector, with more to join in 2024.

“Our country is on the cusp of great opportunities associated with the development of offshore oil discoveries. This long-anticipated moment – the development of Suriname’s offshore hydrocarbon resources and the benefits this will bring to the entire nation – is now closer, with the Final Investment Decision for the development in Block 58 expected by the end of 2024.”