Can you provide an overview of Suriname's current energy sector, highlighting its main dynamics, challenges, and opportunities for growth?
The current energy sector in Suriname consists mainly of oil production, primarily onshore in the province of Saramacca, where Staatsolie produces oil from an onshore field. The country produces about 16,000 to 17,000 barrels per day, which is sweet yet relatively heavy crude, refined locally at the Staatsolie refinery for diesel, fuel oil, and gasoline.
The power generation is split between the Brokopondo hydro dam, which generates about half of the country's electricity, and thermal engines powered by fuel oil, which accounts for the rest.
Looking forward, the 2019 oil discovery by Apache Corporation, followed by TotalEnergies’ participation in the project since 2020, has led to significant offshore development with the sanction of the Gran Morgu project in October 2024. The first oil production is projected for 2028, with a $10.5 billion investment, of which a predicted spend of over $1 billion will be invested locally, creating many opportunities for Surinamese businesses. There's also a potential for significant gas and Liquified Natural Gas (LNG) production, particularly with the ongoing Block 52 project by PETRONAS, which could transform Suriname into an LNG exporter.
Challenges include the limited workforce due to Suriname's relatively small population, which means we need to invest heavily in education and healthcare to meet the demands of this booming sector. Additionally, the country faces a brain drain, with many skilled workers leaving for higher-paying opportunities abroad. However, there are promising initiatives, like the Blue Wave Program, to develop local skills in local enterprises.
What role does Bloem Consultants play in this sector?
I advise the government, medium to large enterprises, and foreign companies interested in Suriname, in the oil and gas industry as well as other fields. My work focuses on preparing Surinamese businesses for these large projects and helping foreign companies establish partnerships with local businesses. I also provide consulting services in countries in the Caribbean, Europe and the Middle East.
How attractive is Suriname to international investors?
Suriname is very attractive to international investors, especially in the oil and gas sector. We have a stable investment climate, but one of the key challenges is improving the Ease of Doing Business. The Government and the Suriname Trade and Industry Association (SITA) are actively working on improving business infrastructure, including laws, institutions, and educational systems. For foreign companies, finding a trustworthy local partner is crucial. Suriname is open to more foreign investment, and I believe that the country will continue to attract investors in the future.
What are some of the most exciting innovations in Suriname's energy sector?
In my opinion, Floating LNG is by far the most exciting innovation. It's a game-changer for developing stranded gas fields. Suriname has a lot of gassy oil, which can be monetized through LNG. Floating LNG is a nimble, cost-effective solution and it could play a big role in Suriname monetizing its gas and at th same time supporting its own energy transition. Additionally, there’s potential for solar photovoltaics and biomass energy, using Suriname's abundant green resources. We’re already seeing trials where rice chaff is used to produce biomethane for power generation and industrial use, which has a lot of potential for scaling up.
How do you see the balance between oil and gas exploration and renewable energy development in Suriname?
I really do not believe the two exclude each other. Oil brings wealth, but gas brings prosperity. While oil is largely for export, a small part of the natural gas can be used locally to power the country’s electricity grid more cheaply and cleanly as well as support industrial development. It could also enable Suriname to enter the LNG market, which has great potential, particularly towards supplying for example South America and Europe. Additionally, gas could replace fuel oil use in power plants at home and in the Caribbean, thereby reducing pollution and emissions. At the same time, solar and biomass energy have great potential for Suriname, and as we move toward decarbonization, these renewable resources will be critical.
What would be your message to Newsweek readers considering Suriname as a potential tourism or investment destination?
Suriname is a hidden gem. It’s a small, beautiful country with an incredibly diverse and friendly population, it is a safe living environment and has immense potential, especially in energy and natural resources. There’s a lot of excitement in the air, and the country is making great strides in developing the skills and infrastructure needed for the future. Whether you’re an investor or a tourist, Suriname offers unique opportunities and experiences that are just beginning to be realized.
