Netherlands Journal of Geosciences — Geologie en Mijnbouw |95 – 4 | 375–392 | 2016 doi:10.1017/njg.2016.32 Staatsolie’s VISION 2030: the contributions of petroleum geology to Surinamese society August Nelson Staatsolie Maatschappij Suriname N.V. Corresponding author. Email: [email protected] Manuscript received: 27 June 2016, accepted: 04 July 2016 Abstract Staatsolie Maatschappij Suriname N.V., together with the gold mining industry, has gradually become a major contributor to the Surinamese economy since the decline of the alumina industry. In the last 35 years, about 110 MMbbls (million barrels) of crude oil have been produced. Staatsolie is now in the early stages of fulfilling its VISION 2030, which is not only aimed at increased exploration and production but also at power generation, further diversification and regional expansion. The basis for achieving these goals is accelerated on- and offshore exploration, followed by growth in production. The offshore region remains a frontier area, with only a few wells drilled. Current production is about 17,000 bopd (barrels of oil per day). Between 2007 and 2014, Staatsolie has spent about US$120 million on exploration. An integrated study for the Suriname– Guyana Basin carried out by Staatsolie in 2009 demonstrated the upside potential of this basin from a source rock potential perspective, which has been proven by both the Liza-1 oil discovery offshore of Guyana in 2015 and the Zaedyus-1 oil discovery offshore of French Guiana in 2011. Staatsolie is now focusing its efforts on the near-shore area, where it recently concluded a five-well drilling programme, following a 3-D seismic survey. In the deep offshore area, international oil companies (IOCs) are actively pursuing the next discovery in the Atlantic Margin, partly driven by the conjugate-margin theory geologically linking South America and West Africa. Staatsolie is also attempting to increase recovery from the most mature and largest oilfield, the Tambaredjo Field, through Enhanced Oil Recovery (EOR) technologies of which polymer flooding is deemed the most suitable, with estimated potential incremental recovery of up to 12%. Staatsolie recognises the role of a highly skilled and motivated workforce and therefore continues investing in its people through internal as well as external training. Thirty-five years after it was founded by Mr Eddy Jharap, a geologist by training and the first Managing Director of the company, it can be stated that Staatsolie has taken its place in Surinamese society as a significant contributor to the economy, a preferred employer, a nucleus for industrial spin-off and an example for other companies. Keywords: exploration, history, oil, Suriname, West Africa Introduction and 50% of the premium gasoline demands of Suriname for the foreseeable future. The remaining volume of about 2000 bopd Staatsolie Maatschappij Suriname N.V. is a fully integrated oil of crude oil is sold to clients in the Caribbean region. company, with the Republic of Suriname as its single share- Although Staatsolie’s focus is on the exploration, produc- holder. It was founded on 13 December 1980, initially only to tion, refining and marketing of crude-oil products, it combines promote and manage the petroleum potential of Suriname. The this role with that of ‘agent of the State’ of Suriname, the first successful well was drilled in 1982, and first production regulator tasked to assess, promote and manage primarily the took place in 1983. Crude production has since then steadily deepwater acreage (Fig. 1), of which part is currently under increased to 17,000 bopd (barrels of oil per day) at present. Of production-sharing contracts (PSCs). this volume about 15,000 bopd is refined to premium diesel and To ensure Staatsolie’s sustained growth, while limiting its premium gasoline. Staatsolie can satisfy all the premium diesel exposure to the volatility of the oil business, the company C Netherlands Journal of Geosciences Foundation 2016 375 Downloaded from https://www.cambridge.org/core. IP address: 170.106.35.93, on 26 Sep 2021 at 02:18:18, subject to the Cambridge Core terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/njg.2016.32 Netherlands Journal of Geosciences — Geologie en Mijnbouw Fig. 1. Suriname’s on- and offshore exploration and production blocks (source: Staatsolie/Petroleum Contracts, 2016). developed its ‘VISION 2030’. This vision revolves around di- VISION 2030, combined with its increasing contributions to the versification of the product portfolio, essentially transforming state financial balance, illustrates the importance of Staatsolie Staatsolie from an oil company into an energy company. To ful- in a small economy like Suriname’s. fil this vision, Staatsolie is also pursuing industrial sugar-cane It is, however, acknowledged by all parties involved that farming for ethanol production. Recent pilot test results for this growth can only be sustained by an increase in production this agricultural part were encouraging. However, the project coupled with sufficient reserves to support it. This has resulted has been put on hold, subject to the selection of a suitable in accelerated exploration activities, both by Staatsolie itself as business partner. Studies have also been carried out regarding well as by the offshore operators under PSCs. Staatsolie’s explo- the hydroelectric potential, called the TapaJai project, focusing ration activities involve both the on- and near-shore acreage on increasing the potential of the current hydroelectric plant. to water depths of about 35 m, while the IOCs focus on greater In addition, a fully operational thermal power plant operated water depths. by Staatsolie’s subsidiary, Staatsolie Power Company Suriname The challenges and risks faced by Staatsolie and the other N.V. (SPCS), delivers power to the refinery as well as the na- operators have to do with the nature of the Suriname–Guyana tional grid. To meet the local fuel needs, Staatsolie has recently Basin, which exhibits a typical passive margin setting where expanded its refinery with an investment of close to US$1 bil- trapping is primarily stratigraphic in nature. However, the re- lion. In 2011, Staatsolie acquired the rights to the Texaco retail cent oil discoveries in French Guiana and Guyana, combined gas stations and branded them GOw2. This growth, driven by with the conjugate-margin theory stressing the similarities of 376 Downloaded from https://www.cambridge.org/core. IP address: 170.106.35.93, on 26 Sep 2021 at 02:18:18, subject to the Cambridge Core terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/njg.2016.32 Netherlands Journal of Geosciences — Geologie en Mijnbouw Fig. 2. Location of the Suriname–Guyana Basin (http://mile2herald.wordpress.com, 2014). the petroleum geology of West Africa and northeastern South The sediments are primarily clastic, but reef carbonates de- America, have further boosted interest in the basin, even at a veloped at the palaeo shelf edges. The deeper parts of the basin time when the oil business has taken a downturn. contain turbidite and low-stand fans originating from massive Currently Staatsolie continues production from its three on- shelf-edge canyons (R. Downie & J. Hall (Amerada Hess Inter- shore fields, Tambaredjo, Calcutta and Tambaredjo North-West national London), internal report for Staatsolie, 2013). (TNW), and is assessing various EOR methods such as polymer Remnants of early rifting are present in the form of Jurassic flooding, to optimise oil recovery. grabens, of which at least two have been identified on the Surinamese shelf: the Nickerie and the Commewijne Grabens. Geological setting Their onshore equivalent is the Takutu Graben on the border between Guyana and Brazil (Crawford et al., 1985). These may have been formed as part of a failed-rift system in the early The Suriname–Guyana Basin is situated on the northeastern development stages of the basin (Pecten Suriname, internal part of the South American continent and includes the off- report for Staatsolie, 1995). shore and part of the onshore areas of French Guiana, Suriname, The basin contains a proven world-class source rock of the Guyana and eastern Venezuela (Fig. 2). The vast basin is domi- Canje Formation of Cenomanian–Turonian age, which is equiv- nated by its passive-margin setting dating from the Cretaceous alent to the Naparima Hill Formation in Trinidad and Tobago and is similar to most other Atlantic margin basins (Fig. 3). and the La Luna Formation in Venezuela (Crawford et al., To the south it is bordered by the crystalline Guiana Shield, a 1985). craton of Proterozoic age. This shield supplied the bulk of the The only three producing fields in the basin are situated on- clastic sediment in the basin. shore of Suriname in the shallow clastic sedimentary wedge, less The development of the Suriname–Guyana Basin is linked to than 900 m thick, overlying crystalline basement. The porosities that of the Atlantic (Pindell & Kennan, 2001) and comprises reach values of 35%, and permeability values of up to 1100 mD three distinct phases: have been recorded. The reservoirs vary in age from Paleocene • rifting, which started during the Late Jurassic (150 Ma); to Miocene. The onshore and near-shore depositional settings • inversion during the Late Cretaceous (130 Ma); are primarily of fluvio-deltaic origin with interbedded calcare- • drifting, which started during the Late Cretaceous (80 Ma). ous banks formed by seashells. These banks sometimes act as 377 Downloaded from https://www.cambridge.org/core. IP address: 170.106.35.93, on 26 Sep 2021 at 02:18:18, subject to the Cambridge Core terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/njg.2016.32 Netherlands Journal of Geosciences — Geologie en Mijnbouw Fig. 3. South–north schematic cross-section through the Suriname–Guyana Basin illustrating the various petroleum play systems present in the basin (Staatsolie internal report 2015).