50-50 joint venture with TotalEnergies’ subsidiary (Block 58 operator) for 220,000 barrels of oil per day Floating Production Storage and Offloading (FPSO) unit
First oil production from the Krabdagu and Sapakara fields anticipated in 2028
Project to feature new technologies to minimize greenhouse gas emissions
PARAMARIBO, Suriname, Oct. 01, 2024 (GLOBE NEWSWIRE) -- APA Corporation (Nasdaq: APA) announced today that its subsidiary has reached a positive final investment decision (FID) for the first oil development in Block 58, located offshore Suriname. The project has been named GranMorgu, which is derived from a local language and means both “new dawn” and “goliath grouper.”
GranMorgu will include production from the Krabdagu and Sapakara oil discoveries, where appraisal drilling confirmed gross estimated recoverableresources of more than 750 million barrels of oil. Total investment is estimated at $10.5 billion, with first oil in 2028. TotalEnergies EP Suriname B.V. is the operator of Block 58, with a 50% interest, alongside APA Suriname 58 Corporation LDC (50%). Staatsolie, Suriname’s national oil company, has the option to enter the development project with up to 20% interest upon FID.
At meetings held in Paramaribo, John J. Christmann IV, CEO of APA, met with His Excellency Chandrikapersad Santokhi, President of the Republic of Suriname, and Annand Jagesar, CEO of Staatsolie, to review the development plans for Block 58, as well as with Patrick Pouyanné, Chairman and CEO of TotalEnergies.
“I would first like to recognize TotalEnergies and Staatsolie for their many contributions that have made today’s FID announcement possible,” Christmann said. “This first development offshore Suriname is a significant milestone for many stakeholders, including the people of Suriname, our joint venture and APA shareholders.”
“APA recognized the opportunities offshore Suriname and first entered the basin in 2012, expanding our position with the acquisition of Block 58 in 2015,” he said. “We look forward to working with our partners and the government of Suriname to help meet the world’s demand for affordable, reliable energy.”
The Sapakara and Krabdagu 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 (93 miles) off the Suriname coast, with an oil production capacity of 220,000 barrels per day. The GranMorgu FPSO is designed to accommodate future tie-back opportunities that would extend its 4-year production plateau.
GranMorgu will feature technology that minimizes greenhouse gas emissions, including an all-electric FPSO configuration with zero routine flaring and full reinjection of associated gas into the reservoirs, an optimized power usage with a waste heat recovery unit and deep-sea water cooling for improved efficiency, and installation of an advanced methane detection and monitoring system.
In addition to reaching approval for the Phase-1 Central Area Field Development, the partnership has retained optionality for further exploration in Block 58. This will allow the partnership to fully explore the significant remaining potential of the block in the proven trend, as well as untested plays.
About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2023, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.
Cautionary note to investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. APA may use certain terms in this news release, such as "resources," "potential resources," "resource potential," "estimated net reserves," "recoverable reserves," and other similar terms that the SEC guidelines strictly prohibit APA from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in APA’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2023 available from APA at www.apacorp.com or by writing APA at: 2000 W. Sam Houston Pkwy S, Ste. 200, Houston, TX 77042 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1- 800-SEC-0330 or from the SEC's website at www.sec.gov.
