A decision to enter a potential production development phase at Block 58 will not come cheap for Staatsolie. The Suriname state-owned oil company and market regulator is entitled to take up to 20 working interest in Block 58 should TotalEnergies opt to turn exploration successes at the Maka Central-1, Sapakara West-1, Kwaskwasi-1 and Keskesi East-1 discoveries into future production. Pegged at between $3 billion and $5 billion by consultancy Wood Mackenzie, developing Block 58 will be expensive. "It appears Staatsolie would initially be more interested in entering with a smaller stake to have greater flexibility because the option is for individual developments and not the whole block," says Wood Mackenzie senior upstream research analyst Luiz Hayum. Staatsolie has until the French major makes a final investment decision on Block 58, which is expected later this year or early 2023, to activate the farm-in contractual clause. If Staatsolie opts to enter the consortium, it will be obliged to make cash calls to cover investments to contract drilling rigs, subsea equipment and a production facility. TotalEnergies made a "significant" discovery at the Krab-dagu-1 well in Block 58, a few kilometres south-east of Keskesi East-1. Chief executive Patrick Pouyanne said three wells will be drilled this year and the consortium needs to find a solution for commercialisation of the natural gas, which he said might be "tricky and delay everything", as flaring is not an option in Suriname.
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