Amsterdam, 30 dec 2023– The Petronas discovery in Suriname has the potential to double the basin development projects available for Exxon Mobil Corporation.
Suriname is supportive of the oil and gas industry and has no active border disputes.
Exxon Mobil and its partners can develop multiple FPSO projects simultaneously as needed.
A second partnership discovery makes it very possible that basin production growth will become significant to Exxon Mobil.
The market is seeing the value of discoveries in Suriname and Guyana because there is cash flow from operating FPSO’s in Guyana.
This idea was discussed in more depth with members of a private investing community, Oil & Gas Value Research.
Exxon Mobil Corporation (NYSE:XOM) has been developing the Guyana discoveries for some time. That is likely to continue as Guyana has some very strong allies that want Guyana just as it is now. In the meantime, Petronas appears to have found enough oil partnered with Exxon Mobil to put Suriname way up the priority list for the foreseeable future. Together, these two countries represent a lot of growth potential, even for a giant like Exxon Mobil. It will take a couple of years for the cash to begin flowing. But once it does, it is likely to be very significant to the partners.
S u r i n a m e
A quick summary in English of Suriname can be found here. This country was a Dutch colony and is now an independent country. Suriname is supportive of the oil and gas industry because it will be bringing in foreign currency that the government can use in its budget. Unlike Guyana, there is little to no active border disputes. Therefore, this country, the oil and gas development will be far more unfettered than might be the case next door in Guyana.
The Announcement
In early November, Petronas, the operator of the partnership, announced a major discovery in block 52 of Suriname, of which Exxon Mobil is a 50% participant.
Exxon Mobil In Partnership with Petronas Discovers Oil In Suriname (Oil & Gas Journal November 3, 2023)
For those unfamiliar with Petronas, Petronas is a government-owned Malaysian company with several public subsidiaries. Petronas is very large and responsible for a fair amount of government income. Both companies in this partnership, Petronas and Exxon Mobil bring a lot of experience and resources “to the table.”
What this discovery means for shareholders of Exxon Mobil is that the discoveries very likely will extend the Guyana oil fields into Suriname for one giant project.
