Latest update April 1st, 2025 5:37 PM
Surinamese President promises citizens transparency, current and generational benefits from oil operations
Kaieteur News – Surinamese President Chandrikapersad Santokhi on Tuesday reaffirmed his government’s commitment to ensuring transparency, accountability and maximizing benefits for current and future generations from the oil and gas industry.
President Chandrikapersad “Chan” Santokhi
He made that statement during his keynote address at the Suriname Energy, Oil & Gas Summit (SEOGS). SEOGS 2024 is being held in Paramaribo, Suriname until June 7. The event is hosted by Staatsolie, Suriname’s state oil firm, under the theme “The Next Stage of Success”.
President Santokhi underscored that while welcoming investment, Suriname’s government stands firm on its core principles for the oil and gas industry. These principles, he stressed, are indispensable and non-negotiable. The Surinamese head-of-state said, “rest assured that we will provide a stable and business friendly environment to conduct your business. Our vision for the oil and gas income strategy focuses on utilising the wealth generated to create sustainable economies and the diversification of our economy for current and future generations.”
Santokhi said that central to Suriname’s approach is the belief that natural resources belong to the people. “The wealth from extractive industries belongs to the people, not governments, not politicians, not political parties, or the private sector,” he said.
It is estimated that the discovered oil resource count in Suriname is more than 2.4 billion barrels and its natural gas resources are 12.5 trillion cubic feet. With substantial oil and gas reserves, Santokhi highlighted the importance of responsible leadership in managing these resources for the benefit of society. He said leadership responsibility is another key principle. According to President Santokhi, elected leaders are duty bound to design a natural resource management strategy that uses the wealth and transforms societies and economies by ensuring widespread and sustainable benefits.
Transparency and accountability are paramount, Santokhi asserted, highlighting the government’s commitment to managing resources safely. “We are committed to managing these resources safely, accountably and transparently. Safeguarding their benefits for the future using the sovereign wealth fund as a tool,” the president said.
Looking ahead, President Santokhi underscored the necessity of planning for a post-oil and gas era, highlighting the importance of energy transition for a sustainable and diversified economic future. Moreover, President Santokhi also spoke about local content and encouraged local companies to step up and participate in the industry. He also, encouraged foreign companies to form joint ventures with local companies. “Let us be ready for the next stage of success not only on a company level but regionally and international corporate collaboration between countries is vital in today’s world,” he added.
Neighbours, Guyana and Suriname are both new to the oil and gas industry. The first discovery offshore Guyana was made in 2015, while the first discovery offshore Suriname was made in 2020. Suriname has been praised for ensuring that it does not fall prey to some grave flaws in Guyana’s Stabroek block Production Sharing Agreement (PSA) with ExxonMobil Guyana Limited (EMGL). The Stabroek Block PSA has been considered by some to be too generous to the oil companies. The deal includes a royalty rate of 2%, a 75% cost recovery ceiling, after which the remaining 25% profit is shared 50-50 between Guyana and the oil companies. Notably, the contract also lacks a ring-fencing provision and gives the oil companies a tax-free ride.
In contract, Suriname’s model contract with Total Energies, impose a higher royalty rate of 6.25%, a 36% income tax, a profit split that varies between 30% and 50% and a cost recovery ceiling of 80% on companies. It also includes a ring-fencing provision to prevent revenue losses for Suriname, and ensure that the country gets a higher share of upfront dollars
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