Promising oil producer Suriname in political deadlock after elections
Suriname’s two leading political parties started negotiations with smaller groups to determine which will form the promising oil producer’s government.
A general election on May 25 was inconclusive, with no party winning the two thirds of the 51 seats needed to elect a President, according to the Internal Affairs Ministry.
Jennifer Geerlings-Simons chairs the Parliament (DW photo)
The incumbent conservative Progressive Reform Party (VHP) of President Chandrikapersad Santokhi won 17 seats, with the main Opposition left-of-centre National Democratic Party (NDP) of Jennifer Geerlings-Simons taking 18 seats.
Both VHP and NDP with be negotiating with five parties that won the remaining 16 seats, with analysts and commentators suggesting the talks could be protracted.
“We are on the right track,” Geerlings-Simons said Monday. “We are where we are at the moment and this is the first step towards being the Government.”
The successful coalition is set to oversee rapid economic expansion based on forecast crude production from offshore fields.
Chandrikapersad Santokhi displays an inked finger after voting at a polling station in Paramaribo, Suriname, on May 25 (Juan Barreto/AFP/Getty Images)
Suriname could become a major oil producer. Its current production from state firm Staatsolie’s onshore Tambaredjo field averages 17,200 barrel per day (bpd). But recoverable oil resources from offshore fields are estimated at 2.4 billion barrels of petroleum liquids (bl), while recoverable gas resources could exceed 12.5 trillion cubic feet (tcf), the Government said, referring to reports by independent analysts.
The winning party will have a five-year term and will oversee the start of offshore crude production in 2028 from French major TotalEnergies’ US$12.2 billion GranMorgu deepwater project that is targeting output of 220,000 bpd.
The search for oil and gas will gather pace later this year with TotalEnergies drilling another well. Malaysia’s Petronas, Chevron and Shell will also drill wells by year-end, with PetroChina joining the search in 2026.
Other companies with production-sharing contracts with Staatsolie include US’ Hess and Spain’s Moeve, formerly Cepsa.
Suriname is hoping to emulate neighbouring Guyana and become a major crude producer, Santokhi said.
US major ExxonMobil started crude production in Guyana in 2019 and is projecting output averaging 674,000 bpd for 2025, according to Government projections. (Argus Media)
