Venezuela has concluded a memorandum of understanding with French energy giant TotalEnergies to strengthen cooperation in the energy sector.
The agreement was signed in Caracas on Saturday, September 19, while TotalEnergies is simultaneously working on the development of the multibillion-dollar GranMorgu project off the coast of Suriname. No details have yet been disclosed about the specific content and financial scope of the Venezuelan agreement.
The agreement was signed at the Miraflores presidential palace by Héctor Obregón, president of Venezuelan state oil company PDVSA, and Javier Rielo, senior vice president for the Americas at TotalEnergies’ Exploration & Production division. Acting President Delcy Rodríguez and Patrick Pouyanné, chairman and CEO of TotalEnergies, were present at the signing.
According to Reuters, the memorandum is intended to strengthen bilateral cooperation in the energy sector. It has not yet been disclosed which oil or gas projects will fall under the agreement and what investments TotalEnergies may wish to make in Venezuela.
The agreement comes at a time when Venezuela is seeking to involve more international energy companies in its oil and gas sector. Other foreign companies have also recently made arrangements regarding possible investments or cooperation with PDVSA.
TotalEnergies an important player in Suriname
The development is relevant to Suriname because TotalEnergies is responsible here for the development of the GranMorgu project in offshore Block 58. The project is considered the largest investment ever made in Suriname.
TotalEnergies estimates the total investment in GranMorgu at approximately USD 10.5 billion. The project focuses on developing the Sapakara and Krabdagu oil fields, about 150 kilometres off the Surinamese coast. Recoverable reserves are estimated at nearly 760 million barrels of oil.
The floating production, storage and offloading unit (FPSO) will have a production capacity of approximately 220,000 barrels of oil per day. Production is scheduled to begin in 2028. TotalEnergies is the operator of the project and currently holds a 40 percent stake. APA Corporation also holds 40 percent and Staatsolie holds 20 percent.
The French energy group previously stated that GranMorgu occupies an important position within its international oil portfolio. The Final Investment Decision for the project was taken in October 2024.
Rodríguez recently visited Suriname
The Venezuelan agreement with TotalEnergies follows shortly after Rodríguez’s official visit to Suriname. On September 11, she visited President Jennifer Simons, with both countries making agreements on further cooperation in areas including energy, fisheries, agriculture, aviation, tourism and education.
Cooperation within the oil and gas sector was also on the agenda during those talks. Venezuela made knowledge and experience in the field of exploration and production available to Suriname, among other things. Knowledge transfer and training were also discussed.
The new agreement between Venezuela and TotalEnergies thus places the French group more prominently in the energy sector of both neighbouring countries. For Suriname, GranMorgu remains TotalEnergies’ most important project in the region for the time being, while it remains to be seen what specific activities will result from the memorandum with Venezuela.
