The South American country of Suriname has announced plans to share revenues from recently discovered oil and gas fields off its coast.
President Chan Santokhi has introduced a new initiative called “Royalties for Everyone” (RVI) after multiple oil reserve discoveries by the Block 58 offshore drilling project from 2019 to 2023. This initiative aims to ensure that all Surinamese citizens benefit from the estimated $10 billion wealth generated over the next 10 to 20 years.
Santokhi explained, “The RVI instrument guarantees that every Surinamese resident will receive a savings note worth US$750 with a 7 percent annual interest, paid out from the royalty income of Block 58 in the future.” Oil and gas production is set to commence in 2028.
This royalties programme is intended to directly distribute the expected profits from the country’s natural resources to its people, representing a significant shift in economic policy for Suriname.
Block 58, a large $10.5 billion deepwater oil and gas project off Suriname’s coast, operated by French energy giant TotalEnergies and US energy company Apache Corporation, is expected to tap into substantial oil reserves that could yield up to 220,000 barrels of crude oil daily.
Where have the reserves been found?
Exploration history reveals that Guyana, Suriname’s neighbor, has also benefited from offshore oil discoveries. Guyana recently announced cash payments for its citizens aged 18 and over from revenues generated by offshore oil exploration.
Is Suriname the only country sharing oil wealth in this region with its citizens?
No, Guyana is also sharing oil wealth with its citizens through cash payments to individuals. Both countries have seen significant economic changes due to their oil discoveries.
How was oil discovered off the coasts of Guyana and Suriname?
Oil reserves in both Guyana and Suriname were discovered through various exploration projects, with notable finds in recent years leading to significant changes in their economies.
Will newfound oil wealth change economic prospects for Guyana and Suriname?
The economic outlook for Guyana and Suriname is expected to improve with newfound oil wealth, although challenges such as poverty and economic instability remain prevalent.
Which other countries use wealth from natural resources to benefit citizens?
Several countries, including Mongolia, Botswana, and some states in the United States, have implemented programmes to distribute wealth from natural resources to their citizens.
