BUZZ-Suriname upstream oil investments could reach $9.5 bln through 2027, Rystad says

Focus is growing on oil exploration in the South American nation of Suriname, say analysts at Rystad Energy, forecasting $9.5 billion in upstream investments between this year and 2027, compared to $514 million last year and $348 million in 2020

Rystad Energy analysts estimate at least 10 wells will be drilled offshore Suriname this year and next combined, driving "significant investment and production"

Investments should be driven largely by TotalEnergies' TTEF.PA GranMorgu project and planned exploration campaigns, they say, while Shell SHEL.L and state oil firm Staatsolie are poised to benefit from Araku Deep-1 well

Suriname ranks second among emerging exploration areas after Namibia, Rystad Energy adds, with Shell, TotalEnergies and Chevron CVX.N leading exploration efforts

"Guyana has traditionally been the focal point of oil exploration, but (neighboring) Suriname is increasingly gaining attention as a prime target, particularly in Block 58," says Rystad Energy Upstream Research Vice-President Palzor Shenga

"There is every reason for assets in Suriname to be capable of generating healthy cash flows despite operating in a high-risk and relatively unexplored environment," Shenga adds