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Suriname advances deepwater oil project amid Strait of Hormuz tensions
The dispute over access to the Strait of Hormuz, which ships about a fifth of world oil and natural gas, has helped lift crude prices.
Middle East turmoil tied to tensions involving the United States and Iran is disrupting global energy markets, with an ongoing dispute over access to the Strait of Hormuz pushing oil and gas prices higher. Oilprice notes the Strait is used to ship about a fifth of the world oil and natural gas supply, amplifying the impact of any disruption on benchmark prices.
Oilprice says the higher price environment is benefiting South America’s oil industry, especially Suriname as it nears a potential breakthrough as the country pursues its emerging offshore petroleum boom. The development follows delays that the outlet links to mismatched drilling results and seismic data, as well as a high gas-to-oil ratio.
Since 2019, Suriname has been looking to Guyana’s petroleum windfall, and Oilprice points to five major oil discoveries in offshore Block 58 starting with the Maka Central-1 exploration well in 2020. After delays beginning in 2022, the operator approved a final investment decision, with TotalEnergies holding a 50% working interest in Block 58 and APA Corporation holding the other 50%.
Oilprice adds that after additional delays, TotalEnergies and partner APA approved development of the deepwater Gra, as Suriname moves closer to becoming a larger oil producer in the region. The outlet frames the project as a step toward Suriname becoming South America’s next major oil-producing nation.
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