• Since its founding on December 13, 1980, Staatsolie has paid more than US$ 4 billion in taxes and dividends to the State. Staatsolie's added value to the Surinamese economy is a multiple of this amount. 

• As an example: In 2023, the contribution to the state treasury was US$ 335 million. That is over thirty percent of the US$ 1 billion in government revenue in 2023. The 2023 annual report and those of recent years can be consulted on the Staatsolie website. 

• Staatsolie contributes to employment in Suriname with approximately 1,150 direct jobs and many more indirect jobs. 

• Staatsolie's contribution to the community is significant. Between 2021 and 2023, about US$ 5 million was invested in various social and community projects.  Please see the sustainability reports of 2022 and 2023. 

All PSCs are and will be concluded based on and in accordance with the Petroleum Law of Suriname. According to the Petroleum Law (Official Gazette 1991, No. 7, and the Amendment of the Petroleum Law 1990), Staatsolie is authorized to enter into petroleum agreements with qualified petroleum companies after government approval. 

The fiscal terms consisting of 6.25% royalty, profit oil distribution, and 36% income tax result in a government take for Suriname of 60-70% (after costs), depending on the oil price. Suriname's favorable position has been confirmed through benchmarking with other countries such as Guyana, Brazil, and Angola. 

No, there was no signing bonus (also known as auction price) for Block 58. Contractor (TotalEnergies and APA) have invested about US$ 2 billion in exploration activities in the block. 

Royalty is the fee (for the right to extract oil) paid to the Republic of Suriname. As per law, the royalty is 6.25% of gross production in Suriname's offshore. This percentage remains unchanged throughout the contract's duration. 

Cost oil is the amount of produced crude oil that, after deducting royalty, is allocated to the contractor to recover expenses according to the PSC. A cost oil ceiling, set by contract, ensures that there is always profit oil left, especially at the beginning of the project. 

Profit oil is the amount of produced crude oil that remains after deducting royalty and cost oil. The profit oil is shared between the contractor and the State based on an allocation factor (R-factor). 

The R-factor is defined in the PSC with a formula common in the oil and gas industry. The R-factor ensures that at low oil prices, the State receives relatively less, and the contractor receives relatively more. During periods of high oil prices, the situation reverses: the State receives much more, and the contractor relatively less. The PSC with an R-factor formula were developed in the 1960s and have since been adopted by many countries. 

The contribution to Suriname from the GranMorgu field in Block 58 at different oil prices will be: 

Contractors pay income tax as described in the tax law (36% on their revenues from cost oil and profit oil minus allowable expenses and depreciations). No income tax advantage is granted to the contractor in Block 58. On the contrary, the tax rate of 36% is stabilized in accordance with the Petroleum Law.

It is common in the oil and gas sector for materials, machinery, and other necessities for oil and/or gas production to be exempt from import and export duties. This sometimes relates to the mobility of resources (such as drilling machines). The State, however, receives a large portion of total revenue through royalties, cost and profit oil, and taxes on the contractors' offshore income. The total share flowing to the state treasury is relatively large.

The revenues from Block 58 will significantly contribute to state income. Additionally, there are growth opportunities for local companies supplying goods and services for this project and for the local workforce. Both in the development and production phase, the project is expected to create employment in Suriname. The total demand for labor is expected to range between 2,000 and 4,700 jobs over the project's lifespan. 

However, the benefits of these oil revenues for Suriname and its society depend on various factors which are led by the government of Suriname. These include fiscal and monetary policy, good governance, legislation, and strong institutions. It is also important to have a local content policy and operationalize the savings and stabilization fund. To achieve broad prosperity, all stakeholders in Suriname—the government, businesses, and civil society—need to be involved. 

While Staatsolie supports transparency, there are justified reasons not to make the PSC of Block 58 (and other blocks) public in the interest of Suriname. Full public transparency is challenging because the exact conditions differ slightly per block. Not all offshore blocks were awarded at the same time under the same market conditions, and not all blocks are equally attractive from a geological perspective. To still attract exploration of these blocks, the respective PSCs include conditions aligned with their risk profiles. Full disclosure impairs our negotiations position and is therefore not in Suriname's best interest. 

Publicly listed companies usually do not disclose contractual terms. Generally, this is not required. However, there are international transparency standards, such as the Extractive Industries Transparency Initiative (EITI), that ensure financial flows can be tracked, independently audited and publicly reported. The EITI standard promotes good governance of oil, gas, and mineral resource exploitation. Suriname has been committed to EITI since 2016, and Staatsolie is an EITI-supporting company. TotalEnergies is also an EITI supporting company and will use EITI standards to make its financial flows public and transparent during the production phase of Block 58. 

You can consult the Model PSC on the Staatsolie website. 

Staatsolie has a transparent corporate governance policy and publishes its audited annual reports. The various components of this policy can be found on our website.