There is 700 million barrels of oil, probably a lot more. APA's price does not include Suriname. APA and Total are taking their time to secure this huge investment but investors are not happy with timeline and thought the FID would be sooner than the end of 2024, I think it will.
APA Corporation (Nasdaq: APA) and Total Energies have announced the launching of development studies for a large oil project in Block 58, offshore Suriname. TotalEnergies is the operator of Block 58, with a 50% interest, alongside APA (50%).
Successful appraisal of the two main oil discoveries, with the drilling and testing of two wells at Sapakara South and three wells at Krabdagu, confirmed combined recoverable resources of approximately 700 million barrels of oil for the two fields. These fields, located in water depths between 100 and 1,000 meters, will be produced through a system of subsea wells connected to a Floating Production, Storage and Offloading unit (FPSO) located 150 km off the Suriname coast, with an oil production capacity of 200,000 barrels per day. The detailed engineering studies (FEED) will start by year-end 2023 and the Final Investment Decision (FID) is expected by year-end 2024 with a first production target in 2028.
