The heads of state of Brazil, Guyana and Suriname this week will take the first steps toward forging an infrastructure that would better share the neighboring South American countries' energy and natural resources.
Brazil's President Jair Bolsonaro is expected to arrive in Suriname Jan. 20, and will travel the next day with the head of Suriname to Guyana, where the three chiefs plan to discuss projects including new roads, bridges and energy projects that could reshape the region's economy.
The visit is Bolsonaro's first official trip to Guyana and Suriname, and a recognition of the three countries' shared oil and gas bonanza.
Topics of discussions also include a 1,500-km road from Brazil's Northern Roraima state to a potential deepwater port in Guyana and a 1.2-km bridge across a river separating Guyana and Suriname.
Electric transmission and fiber optic communications links also are contemplated as part of an energy corridor between the nations.
The proposed interconnection would involve some $800 million in projects. First pieces were set to start in 2020 and were delayed in part by the coronavirus pandemic. The projects are expected to be funded with private investment through government concessions, according to Brazil's Infrastructure and Industry Association.
The $200 million port Guyana is seeking investors for could emerge as a key project to bring the three nations together. It would be able to handle imports and exports of oil-industry heavy equipment, grain and container ships.
"The deepwater harbor is a major part of our transformation agenda, and we want Brazil to be part of it," Guyana Foreign Secretary Robert Persaud told Reuters on Jan. 19. "Guyana offers the shortest and quickest access to the Atlantic for significant parts of northern Brazil."
The energy corridor could also include an ambitious 3,000-megawatt power interconnection between Guyana, French Guyana, Suriname and Brazil. The project, called Arco Norte and drafted with the Interamerican Development Bank, is on the presidents' agenda.
Guyana has been the scene of the world's biggest offshore discoveries in years, with 10 billion barrels of recoverable oil and gas confirmed since it began production in 2019 through a consortium led by Exxon Mobil Corp.
Suriname also could inaugurate soon its first oil from an offshore basin shared with Guyana and Brazil, where Petrobras is preparing to drill this year the first of 14 planned wells, part of a $2-billion exploration budget in the Equatorial Margin through 2026.
Recommended Reading
PE-backed Gas Producer Terra Energy Partners Explores $2.5 Billion Sale: Sources
2022-05-23 - Private equity firms Kayne Anderson Capital Advisors and Warburg Pincus launched an auction process to sell their majority stake in Houston-based Terra Energy Partners earlier this month, sources say.
Centennial, Colgate Energy’s $4 Billion Betrothal a Suitable Match
2022-05-23 - Analysts consider the deal, which addresses Centennial’s inventory concerns while also sparing Colgate Energy from a potentially uphill IPO climb, as a sign of things to come in the Permian Basin.
Midstream Performance Indexes Notch Growth for Third Quarter in a Row
2022-05-20 - More than 80% of companies on VettaFi’s lists raised their payouts on a year-over-year basis.
Private Equity Investors See ‘Sustainable’ Opportunities Ahead
2022-05-20 - A focus on sustainability is drawing attention to certain technologies across different energy sectors.
Xcel Energy, IFS Partner to Drive Field Workforce Scheduling Transformation
2022-05-20 - IFS will provide solution for long-term planning and scheduling optimization, as well as driving sustainability for energy giant Xcel Energy.