Afreximbank Coordinates $1.6b Facility For Suriname’s Staatsolie
The African Export-Import Bank (Afreximbank) has acted as global coordinator and joint mandated lead arranger for a senior secured term loan facility amounting to $1.6 billion, in favour of Suriname’s state-owned energy company, Staatsolie Maatschappij Suriname N.V. (Staatsolie), in a major boost to the country’s GranMorgu upstream offshore oil project.
Afreximbank, Banco Latinoamericano de Comercio Exterior, S.A. (Bladex), along with another major international bank and Staatsolie, signed the agreement on Saturday.
Perella Weinberg acted as an advisor to Staatsolie on the transaction.
According to the terms of the agreement, the proceeds of the facility will support Staatsolie in partially refinancing existing debt and funding its 20 per cent working interest in the GranMorgu upstream offshore oil project.
The transaction, the first syndicated loan for which Afreximbank has been mandated in the Caribbean region, also represents the largest project financing transaction in Suriname’s history and paves the way for the country’s initial offshore oil production by mid-2028, according to a statement by Afreximbank.
Capital investments in the project are expected to exceed US$12 billion, with Staatsolie contributing 20 per cent, or US$2.4 billion.
The expected revenue generation, depending on oil price, is projected at over US$26 billion for Staatsolie and the Government of Suriname over the operational life, significantly boosting economic development.
The project, which stands out for its low-carbon design, featuring a fully electric floating production, storage, and offloading unit with a production capacity of 220,000 barrels per day, will more than double Staatsolie´s production, providing Suriname with royalties and dividends.
Commenting on the transaction, President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, said that it will significantly transform the Surinamese economy.
“Afreximbank is most pleased to have played a pivotal role in arranging this financing for Suriname’s Staatsolie. It marks a significant milestone in the Bank’s interventions in the Caribbean and a firm statement of intent by the Bank to support investments in strategic programmes/projects that are consequential to the transformation of the Surinamese economy. Beyond this investment, the Bank is supporting initiatives that will catalyse local participation in the country’s oil and gas sector with the aim of ensuring maximum benefits from the natural resource accrue to the indigenes of Suriname and the larger Caribbean.”
Staatsolie is engaged in exploration, production, refining, retail fuel distribution and power generation. Staatsolie also has a working interest in two gold projects in Suriname. It seeks to develop energy resources to maximise the long-term value for Staatsolie and Suriname, energising a bright future for Suriname
Annand Jagesar, Managing Director of Staatsolie, said: “We have built a solid foundation for Staatsolie to participate in GranMorgu and possible future projects and are embarking on a new phase of transformational growth for the company and the country.”
