Suriname President Aims to Distribute Oil Wealth Fairly. Suriname expects to make $10bn in the next 10-20 years from its offshore crude deposits, with each citizen receiving $750 in a savings account and an annual interest rate of seven percent.
Published Date: 2024/11/25
Background
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Suriname has a population of 600,000 people, with almost one in five living in poverty.
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The country’s annual GDP is around $3.4bn.
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French oil group Total has announced a $10.5bn project to exploit an oil field off the coast of Suriname, with production expected to start in 2028.
Key Points
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Suriname expects to make around $10bn in the next 10-20 years from its offshore crude deposits.
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The country has set up a sovereign wealth fund to manage the oil cash influx.
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President Santokhi has vowed that “everyone shall benefit from this opportunity and no one will be left behind.”
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Each citizen would receive an amount of $750 in a savings account, with an annual interest rate of seven percent.
Comparison
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Guyana, Suriname’s neighbor, has also announced plans to share its oil wealth with citizens, with each adult receiving a payout of around £370.
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This initiative reflects efforts by Suriname to learn from Norway’s success in building up a sovereign wealth fund despite being aware of the “oil curse” that has befallen other resource-rich countries.
Additional Information
Total’s Project
French oil group Total announced a $10.5bn project to exploit an oil field off the coast of Suriname with a capacity of producing 220,000 barrels per day. Production should start in 2028.
Cooperation and Collaboration
This initiative reflects efforts by Suriname to learn from Norway’s success in building up a sovereign wealth fund despite being aware of the “oil curse” that has befallen other resource-rich countries.
Suriname’s Oil Wealth
Expected Earnings
$10bn in the next 10 to 20 years
Current GDP
About $3.4bn annually
Poverty Rate
Almost one in five people live in poverty, according to World Bank figures
President Chan Santokhi’s Plan
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Royalties Payment: Each citizen would receive an amount of $750 in a savings account
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Annual Interest Rate: Seven percent
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Inclusion Goal: “Everyone shall benefit from this opportunity and no one will be left behind”
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Ownership Vow: “You are co-owners of the oil incomes”
Context
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Suriname’s Oil Discovery: Recently discovered oil and gas reserves off its coast
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Guyana’s Payout: All adult citizens living at home and abroad would receive a payout of around £370 as part of an effort to redistribute its oil wealth
