AGM Approves 2022 Financial Statements; Contribution of US$ 320 million to the State treasury

08 May 2023

Staatsolie Maatschappij Suriname NV, together with its subsidiaries, realized a turnover of US$ 840 million in 2022. Subsequently, the contribution to the state treasury is US$ 320 million. The General Meeting of Shareholders (AGM) approved the 2022 financial statements on Monday 8 May 2023.

The realized 2022 turnover of US$ 840 million is the joint result of Staatsolie and its subsidiaries GOw2 Energy Suriname NV and Staatsolie Power Company Suriname NV (SPCS), and the company's participation in the gold mine of Newmont and of Rosebel Gold Mines. The production of oil, refined products and electricity, and turnover are higher in the past fiscal year compared to 2021.

Financial results
The combined (consolidated) revenue of US$ 840 million in 2022 is 51 percent higher compared to 2021 (US$ 558 million). This is mainly due to a higher average oil price in 2022 of US$ 93 per barrel (US$ 70 per barrel in 2021) and higher production results than in 2021. Profit before tax is US$ 430 million (US$ 224 million in 2021). Earnings before interest, taxes, depreciation, and amortization (EBITDA) are US$ 648 million (US$ 398 million in 2021). Optimization and cost reduction programs have also contributed to these significant financial results in 2022.

Contributions to government
The contribution to the state treasury in 2022 is US$ 320 million (US$ 186 million in 2021) in terms of taxes, dividends, and royalties from Staatsolie's participation in gold. In total, approximately US$ 162 million for taxes has been transferred to the government, and US$ 145 million for dividends. With these payments we meet our tax obligations and contribute to the government's income. Staatsolie contributed approximately thirty percent to the government’s revenues for 2022. In 2022, the contributions amounted to approximately ten percent of Suriname's gross domestic product (GDP). GDP is the total of goods and services produced in a country. Basically, everything the people in the country have earned together. Through our participation in the gold mine of Newmont and of Rosebel Gold Mines, approximately US$ 13 million in royalties was transferred to the government in 2022.

In addition to dividends and taxes, we and our subsidiaries contributed to society through, among other things, donations for community projects, healthcare, and sports. In 2022, we have spent over US$ 2 million on social investments. In addition, due to a stipulation in the production sharing agreements with Staatsolie, our offshore partners have spent approximately US$ 1 million on Corporate Social Responsibility (CSR).

There is a lot of attention for vulnerable groups such as the elderly and young people. Some projects that have been carried out or started in the past year are:

  • Improving the living environment of eleven social institutions (children's homes, retirement homes and institutions for people with a disability) in seven districts. This project is being carried out in collaboration with various local contractors.
  • Support of the National Health Care Recovery Plan with US$ 1 million. The money is being used to alleviate the acute need in the health sector.
  • Start of the Oil & Gas Training Program (‘Olie & Gas Kopprogramma’) of the secondary technical school NATIN. This training was established through a collaboration between Staatsolie, the Ministry of Education, Science and Culture, the NATIN, the Surinamese business community, and the international oil companies active in Suriname. The Oil & Gas Training Program is part of the NATIN Upgrade Project, for which Staatsolie took the initiative in 2021 within the framework of local content.

Click the image to read the Summary Annual Report 2022

Production results
In 2022, 6.14 million barrels of Saramacca Crude were produced, about 190,000 barrels more than in 2021. A record amount of 3.30 million barrels of high-quality diesel and gasoline was produced in the Staatsolie refinery, an increase of more than 300,000 barrels compared to 2021. A total of 2.54 million barrels of fuel oil and bitumen have been produced.

Staatsolie's subsidiary SPCS has generated approximately 75 percent of Suriname’s electricity needs. Approximately 1.2 million MWh has been generated at the Afobaka hydropower plant, 200,000 MWh more than planned. About sixty percent of what Suriname needed in electricity was supplied by the hydroelectric power plant. The thermal plant, whose generators run on fuel oil, has generated approximately 296,000 megawatt hours (MWh) of electricity. The production of thermal electricity is balanced by ‘supply and demand’. The higher water levels in the reservoir – the result of the above-average rainfall – have ensured that more hydropower has been supplied to the electricity grid. Due to the optimal supply of hydroelectricity, less thermal electricity was needed to meet the total demand. It is estimated that the state of Suriname saved US$ 26 million on electricity costs.

Subsidiary GOw2 has seen its market share grow from 37 to 39 percent in 2022. The first phase of the World Class Retail Network project was completed in March with the delivery of the renewed service station in Latour. Several GOw2 retail stations will be renovated in the coming years.

There is remarkable interest, locally as well as internationally, in exploration and appraisal activities in offshore Suriname. Appraisal is the valuation of oil deposits and determination of recoverable volumes. The partners TotalEnergies and APA Corporation  will make a Final Investment Decision (FID) for developing a production field after a thorough evaluation and assessment of the finds in Block 58. An FID follows establishing sufficient reserves. Staatsolie is optimistic that a final investment decision for the development of a production field in Block 58 will be taken.

In 2022 four wells (exploration and appraisal) have been drilled in Block 58 in the past year. An exploration well has been drilled in Block 42 (Shell, Chevron, and Hess). The results are encouraging for further exploration activities in this block. In Block 53 (APA, Petronas, and CEPSA) a discovery has been made with the exploration well Baja-1. Exploration wells for the 2023 work program have been identified in Block 52 (Petronas, ExxonMobil ). At the same time, it is being investigated how the Sloanea-1 gas find in this block can be explored and possibly developed as a commercial production field.

In April, Staatsolie and Chevron signed a production sharing contract for the shallow offshore block 7. Staatsolie has a participation share of twenty percent through its subsidiary Paradise Oil Company NV (POC). To this end, POC and Chevron have entered into a Joint Operating Agreement.

On 8 November, Staatsolie launched a bid round for six new blocks in the Demerara area. The blocks lie to the east of the current offshore discoveries. International oil and gas companies can make a bid until 31 May 2023.

In the shallow offshore, a consortium of three international companies has collected high-resolution three-dimensional (3D) seismic data in the 22,000 km² area. The information gathered will contribute to the further exploration of this less deep Surinamese offshore area.

In 2022, we revised our strategic plan. In this, more attention is paid to the offshore and how to respond to global developments in the field of sustainability (Environmental, Social and Governance; ESG). Our very first sustainability report for the first half of 2022 has been released. We look to the future with confidence and will continuously contribute to a bright future demonstrating our vision ‘Energizing a bright future for Suriname’.

We thank all our stakeholders for their contribution to the successes achieved: the shareholder, supervisory board, employees, suppliers, offshore partners, financiers, investors, and customers.