Suriname to finance $1.8 billion offshore investment in Block 58 pending APA, TotalEnergies FID

(WO) — Suriname’s state oil company, Staatsolie, has announced plans to issue bonds in 2025 as part of a strategy to finance its participation in the development of offshore Block 58.

The company, which holds the right to participate in up to 20% of the field’s development under the Production Sharing Contract, is exploring various funding options to meet its estimated $1.8 billion investment requirement.

Staatsolie’s participation in the project hinges on the Final Investment Decision (FID) for Block 58, which is expected to be announced later this year by project partners TotalEnergies and APA Corporation.

To cover its share of the costs, Staatsolie is considering a combination of financing methods, including tapping into its cash reserves, issuing bonds, securing bank loans, or forming partnerships.

The company is aiming for maximum involvement from the local market and has indicated that it will structure the bond issuance to encourage broad participation.

The new bond offering is scheduled to open in January 2025 and will close in March. Staatsolie has confirmed that the bonds will be available in small denominations, making them accessible to the Surinamese public, including existing bondholders. De Surinaamsche Bank (DSB) has been appointed as the arranger for the issuance.

The company’s existing bonds, issued in 2020, are set to mature in September 2025 and March 2027, with interest rates of 7% and 7.5%, respectively. Staatsolie has been consistent with semi-annual interest payments on these bonds.