Guyana, Suriname to start exploring shared gas project – VP Jagdeo

– says officials from both countries to meet soon

Suriname is now forging ahead with its first offshore petroleum development project and according to Vice President Dr Bharrat Jagdeo, this opens up potential opportunities for the two neighbouring countries to collaborate on jointly developing their respective gas resources.
The Vice President made these remarks during his weekly press conference on Thursday at the People’s Progressive Party Freedom House headquarters in Georgetown, where he said he is happy that Suriname was finally able to get a Final Investment Decision (FID) to develop its oil resources offshore.
“I’m happy for Suriname – very happy for them because they’ve worked hard for this… I spoke with the Foreign Minister [of Suriname, Albert Ramdin] and I congratulated him. And I sent a message to President [of Suriname, Chandrikapersad] Santokhi and he responded to the message. We’re pleased for Suriname that they actually have been able to get an FID now and they can move forward. And we’re looking forward to working with Suriname on synergies,” he stated.
According to Jagdeo, while Suriname’s offshore project will focus mainly on developing the oil resources there, it nevertheless opens up the possibilities for the two countries to jointly explore developing their shared gas resources.
“Suriname, they’ve found quite a bit of gas and our discoveries closer to the Suriname border had more gas in them. So, we still need to try to collaborate in the context of our project or our aim to monetise this gas, either within that project or separately but we still need to have a discussion on this… [So,] we’re looking forward to working with Suriname in the future and looking at what kind of shared infrastructure we can have because we’re the only two contiguous countries in CARICOM,” the VP noted.
In fact, Jagdeo disclosed that Minister Ramdin has indicated his intention to bring a team to Guyana to start these discussions. The Vice President said a date for that meeting will be fixed soon.
President Dr Irfaan Ali has always been touting a regional energy corridor as Guyana moves to monetize its gas resources, which will be an independent project from the model Gas-to-Energy (GtE) initiative that is currently under construction at Wales, West Bank Demerara. The GtE project comprises a Natural Gas Liquids (NGL) facility and a 300-megawatt power plant utilising the rich natural gas from the Liza Fields in the Stabroek Block, offshore Guyana.
United States energy firm, Fulcrum LNG Inc., has been selected to work in a tripartite arrangement with the Guyana Government and ExxonMobil to develop a potential gas project.
President Ali back in June had touted several projects that are being considered for this gas monetization plan including a shore base facility, an additional power plant and a potential joint aluminium plant facility between Guyana and Suriname.
“We have to examine a number of possibilities. One is the export of energy – the development of an energy corridor to Northern Brazil and to Suriname; …having a trail of opportunities in terms of LNG also and then integrating that into the Regional Energy Security Programme.”
“The other thing is that you know, we have 1.5 billion tonnes of bauxite reserves between Guyana and Suriname. So, depending on the cost structure, this might be an opportunity that makes an aluminium plant and the operationalisation of such a project, which will be a joint project, viable now… All of these options are being examined… in the conversation and then a viable option – the most competitive, cost-effective, profitable option will be presented,” the Guyanese leader had stated during a press conference in June.
In the Stabroek Block, which Exxon and its coventurers are operating, some 17 trillion cubic feet of gas has already been found with the Pluma and Haimara wells being proven gas fields. The People’s Progressive Party/Civic (PPP/C) Government is seeking to develop this gas.
Back in 2019 and 2023, ExxonMobil drilled for gas at the Haimara-1 and 2 wells, and emerged with varying degrees of success. It was revealed recently that the US oil giant’s drill programme for Guyana for this year and beyond includes plans to further appraise the Haimara 3 and 4 well sites to gauge the commercial potential for gas in the Haimara gas field.
With this drive to push gas development, the Government has already informed ExxonMobil that it would have to relinquish the gas fields if it doesn’t seek to develop the gas.

Oil contract comparison
TotalEnergies and its partner, APA Corporation, have reached a US$10 billion deal for Suriname’s first oil development offshore in Block 58, which will see its first oil by 2028. Based on the oil contract, Suriname’s state oil company, Staatsolie, will have a 20 per cent stake in the operation and the country will benefit from a 6.2 per cent royalty payment.
The Dutch nation’s oil deal has been lauded for better terms and conditions than the controversial 2016 Production Sharing Agreement (PSA) that was signed between ExxonMobil and the then A Partnership for National Unity/Alliance For Change (APNU/AFC) Government for the oil-rich Stabroek Block, offshore Guyana.
“They indeed have better terms than our 2016 agreement has,” VP Jagdeo admitted but in the same breath added, “…who is responsible for this again – the APNU/AFC… And how did we try to fix this? We sought to fix it by getting more benefits from the contract through the local content law and the Gas-to-Energy project so that we could claim other non-fiscal benefits from the contract. And we’ve had Exxon agreeing with that from the time we got into office.”
The Coalition-negotiated 2016 oil contract had been heavily criticised for low royalty, lack of ring-fencing provisions and cost oil claims that saw Guyana losing billions, among other issues. However, the PPP/C Administration last year introduced a series of stringent terms and conditions for new oil deals including a 10 per cent royalty rate, the imposition of a 10 per cent corporate tax, and the lowering of the cost recovery ceiling to 65 per cent from the previous 75 per cent, while maintaining the retention of the 50-50 profit-sharing after cost recovery.
Despite criticizing the PPP/C Government for not renegotiating the contract with Exxon, both the PNC-led APNU and the AFC have committed to “reviewing” the 2016 PSA if they get into office at the 2025 elections. (G-8)