Afreximbank leads $1.6 Billion loan deal for Suriname’s offshore oil project

The African Export-Import Bank (Afreximbank) has led a landmark $1.6 billion senior secured term loan for Staatsolie Maatschappij Suriname N.V. (Staatsolie), Suriname’s state-owned energy company, providing a major boost for the country’s GranMorgu upstream offshore oil project.

The agreement, signed on Saturday, saw Afreximbank serve as global coordinator and joint mandated lead arranger alongside Banco Latinoamericano de Comercio Exterior (Bladex) and another international bank. Financial advisory services were handled by Perella Weinberg on behalf of Staatsolie.

According to the agreement, the loan will partly refinance Staatsolie’s existing debt and fund the company’s 20 per cent working interest in the GranMorgu project. Notably, this marks Afreximbank’s first syndicated loan mandate in the Caribbean and the largest project financing transaction ever recorded in Suriname’s history.

With capital investments expected to exceed $12 billion, Staatsolie will contribute around $2.4 billion. The company and the Surinamese government are projected to earn more than $26 billion in revenue over the operational lifespan of the project, depending on global oil prices.

The GranMorgu venture, designed as a low-carbon operation, will feature a fully electric floating production, storage, and offloading (FPSO) unit with a daily capacity of 220,000 barrels — more than doubling Staatsolie’s current production and securing substantial dividends and royalties for Suriname.

Afreximbank’s President, Prof. Benedict Oramah, described the deal as a transformational milestone for both Suriname and the bank’s Caribbean ambitions. “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 that are consequential to the transformation of the Surinamese economy,” he said.

Prof. Oramah also highlighted plans for further initiatives aimed at fostering local participation in Suriname’s oil and gas sector to ensure the country reaps maximum benefits from its natural resources.

Annand Jagesar, Managing Director of Staatsolie, expressed optimism about the company’s new phase of growth. “We have built a solid foundation for Staatsolie to participate in GranMorgu and future projects, ushering in a transformational period for both our company and country,” he said.

Staatsolie’s operations include oil exploration, production, refining, retail fuel distribution, and power generation, as well as stakes in two major gold projects in Suriname.