The Need and Added Value of a New Refinery in Suriname – Guyana-Suriname Basin

By Marcel Chin-A-Lien – Petroleum and Energy Advisor – 17th June 2025.

My musings, that I wish to share, to whom it may interest and serve.

1. Introduction

The Guyana-Suriname Basin (GSB) has rapidly become one of the world’s most exciting new oil frontiers.

With over 15 billion barrels of proven reserves and surging production from fields like Guyana’s Liza-1 and Suriname’s GranMorgu (Block 58), the region is poised for transformative economic growth. Yet, despite this bounty, Suriname and its neighbors lack a modern refinery tailored to their high-quality, light crude.

Currently, all oil is shipped as crude to distant markets, incurring substantial costs and forfeiting the value that refining brings.

This essay explores why Suriname should seize the opportunity to build a scalable, state-of-the-art refinery, unlocking economic, strategic, and social benefits for the nation and the wider region.

2. The GSB Oil Landscape: Suriname and Guyana

Suriname’s Block 58, led by TotalEnergies and APA Corporation, is now a cornerstone of the country’s oil future.

The GranMorgu field alone holds up to 750 million barrels of recoverable light oil, with Staatsolie entitled to 150 million barrels, expected to start production in 2028.

Meanwhile, Guyana’s Liza-1 and adjacent fields have catapulted the country to global prominence, with production expected to reach 1.2 million barrels per day in the coming years.

Despite these successes, every barrel is exported as crude, missing the chance to capture higher value through local refining and product sales.

3. The Case for a Local Refinery

Exporting crude means, Suriname in the future, and presently Guyana pay $2–$5 per barrel in shipping, plus insurance and demurrage, while losing out on the refining margin—the difference between crude and refined product prices.

Light, sweet GSB crudes are ideal for efficient, low-emission refining.

A modular, scalable refinery—drawing on the Mitsui/Mitsubishi blueprint for Guyana—could start at 30,000–50,000 barrels per day, expanding as new discoveries are made.

This would not only increase value capture but also supply Suriname and its neighbors with premium fuels, enhancing regional energy security.

4. Economic and Strategic Value Creation

• Refining margins: $5–$8 per barrel, with refined products commanding $10–$20 premiums over crude.
• Shipping savings: $300–$750 million saved on 150 million barrels alone.
• Job creation: Thousands of jobs in construction, operations, and supply chain.
• Regional supply: Suriname can supply Guyana, French Guiana, northern Brazil, and the Caribbean, reducing reliance on distant suppliers.
• Historical precedent: Curacao’s transformation after the Shell refinery in 1914 shows the catalytic impact of refining on national development.

5. Blueprint: Mitsui/Mitsubishi Modular Refinery Study

The Mitsui/Mitsubishi study for Guyana recommends a modular, scalable refinery optimized for light, sweet crude.

With capital costs of $700–$900 million for a 30,000–50,000 bpd plant and operating costs of $2.50–$3.30 per barrel, the model is both pragmatic and future-ready. Advanced technology ensures high yields, low emissions, and flexibility to expand as the region’s production grows.

6. Synergies and Future-Proofing

A new refinery can serve as a regional energy hub, processing both Suriname’s and Guyana’s light crudes, and integrating with gas utilization and future petrochemical industries.

Feedstock flexibility is crucial: while light oils from Liza-1 and GranMorgu are ideal for the new plant, heavier oils—such as those discovered by Tullow offshore Guyana and others expected in nearshore GSB—can be refined at Staatsolie’s existing Tout Lui Faut refinery in Paramaribo.

Proactively closing business deals with Tullow and future operators will ensure all grades of crude are monetized efficiently.

7. Economic Impact: Quantitative Assessment

• Shipping cost savings: $300–$750 million for 150 million barrels.
• Gross margin uplift: $750 million–$1.2 billion in additional value from refined products.
• Job creation: 2,000–3,000 construction jobs, 300–500 operational jobs, and thousands more in the supply chain.
• GDP boost: Potential 1–2% increase in Suriname’s GDP.

These figures underscore the transformative potential of local refining, provided risks—such as feedstock supply, market volatility, and capital overruns—are managed with rigor.

8. Policy, Partnerships, and Implementation

Staatsolie should anchor the project, leveraging its GranMorgu entitlement and refinery expertise. International partnerships (Mitsui, Mitsubishi, TotalEnergies, APA) can provide capital and technical know-how.

Proactive engagement with operators of heavier crudes (e.g., Tullow) will maximize refinery utilization. Success depends on clear policies, fiscal incentives, transparent regulation, and phased, modular investment—starting small and scaling up as supply and demand grow.

9. Conclusion

A new refinery in Suriname is more than an energy project—it’s a catalyst for national and regional transformation.

By capturing value locally, creating jobs, and building regional resilience, Suriname can chart a path toward sustainable prosperity.

The time to act is now: with proven reserves, rising production, and a clear technical blueprint, Suriname stands ready to lead the next chapter of the GSB’s energy story.

References

1. Guyana Oil & Gas Master Plan (Mitsui/Mitsubishi Study), Government of Guyana, 2023. petroleum.gov.gy
2. Staatsolie Annual Report 2024. staatsolie.com
3. ExxonMobil Guyana Project Updates. corporate.exxonmobil.com
4. TotalEnergies Suriname Discoveries. totalenergies.com
5. Tullow Oil Guyana Operations. tullowoil.com
6. IEA Oil Market Report 2024. iea.org
7. Curacao Refinery Historical Analysis, University of the Netherlands Antilles, 2015.
8. World Bank Suriname Economic Update 2024. worldbank.org
9. S&P Global Platts: Refining Margins and Shipping Costs, 2024.
10. OPEC World Oil Outlook 2024. opec.org

Author CV

Marcel Chin-A-Lien – Petroleum and Energy Advisor
Contact: marcelchinalien@gmail.com
Profile: Petroleum and energy advisor with 48 years of experience in upstream and downstream oil and gas, refining, and energy policy. Deep expertise in the Guyana-Suriname Basin, Golden Lane, and regional energy development. Recognized for strategic consulting, technical evaluation, and facilitating value creation across the hydrocarbon value chain.
Education: drs. Geology, Leiden University; MBA
Professional Experience:

• Petroleum and Energy Consultant (Est. 2005, Independent; for Staatsolie, Suriname, from 2008-2010.)
• Advisor on exploration, refining, and energy strategy for governments and oil companies in South America and the Caribbean

Key Publications:

• “Gas Utilization Strategies in the Guyana-Suriname Basin” (2024)
• “Economic Impact of Blocks 52 and 58, offshore Suriname” (2025).

Professional Memberships: American Association of Petroleum Geologists (AAPG), Certified Petroleum Geologist (AAPG, since 1993), EFG, and Association of International Energy Negotiators (AIEN).

LinkedIn Pitch:
The Guyana-Suriname Basin is booming, but Suriname still exports all its oil as crude—missing out on billions in added value. My new essay explains why a modern, modular refinery is the missing link for Suriname’s economic transformation. With proven reserves, rising production, and a clear technical blueprint, Suriname can capture refining margins, create jobs, and become a regional energy hub. The time to act is now. Read the full analysis and join the discussion!