Suriname on the Brink of a Windfall: New Oil Discovery Set to Flood Economy

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Suriname, the smallest nation in South America, is gearing up for an influx of revenue following a significant discovery of offshore oil. The president has assured that the citizens will directly benefit from this newfound wealth.


The population of around 600,000 Dutch speakers anticipates generating approximately $10 billion over the coming ten to twenty years, following the planned commencement of oil extraction in 2028.


The anticipated production level stands at 220,000 barrels per day (bpd), an increase from approximately 5,000 to 6,000 barrels. This occurs in a nation where one-fifth of the population lives below the poverty line.


"In 2028, we will become an oil-producing nation," President Chan Santokhi stated to AFP before the elections held on Sunday to select the new president.


He is among multiple contenders vying for the position in charge of the former Dutch territory located between Brazil, Guyana, and French Guiana.


This will bring substantial revenue to the country," Santokhi stated. "Now we have the ability to do more for our citizens, ensuring that everybody can contribute to and benefit from the nation’s progress.


In addition to investments in agriculture, tourism, healthcare, education, and green energy, part of the oil revenue is being distributed directly to Surinamese citizens through a program called "Royalties for Everyone," known by its Dutch acronym RVI.


"This is their portion," he stated.


Victorine Moti, a financial ministry representative overseeing the fund, informed AFP: "All residents of Suriname can participate in this initiative, provided they were born prior to January 1, 2025, and hold Surinamese citizenship."


The number stands at 572,000 individuals.


Every citizen who qualifies has the opportunity to sign up for a single-time deposit worth $750, which will be credited to an account offering a yearly interest rate of 7%.


"Armed with the certificate, they can visit the bank where they face two choices: withdrawing funds or opting to save them. Ideally, they should aim to save rather than make an immediate withdrawal," stated Moti.


The initial recipients include senior citizens and people with disabilities, funded through advances from financial institutions.


The next group to be addressed will consist of individuals who are 60 years old and above. Following this, starting from 2028 when the funds begin to come in, the largest segment — those between 18 and 59 years old — will follow.


Individuals who set aside funds for a decade will get an additional $150 bonus atop the accrued interest.

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‘Enjoy my money’
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Naslem Doelsan, who is 80 years old, has already obtained her certification and informed AFP that she plans to redeem it "in order to purchase quality food and some household items."


"Why do I need… money in the bank? I’m already old and I want to enjoy my money," she said.


Retiree Jai Abas, aged 91, shared with AFP that he plans to leave the funds in the bank temporarily and might provide his granddaughter, residing in the Netherlands, some spending cash during her next visit.


"What could I possibly do with money? I am advanced in years. I cannot travel far," stated Abas, mentioning that smoking is his sole indulgence.


Anuschka Tolud, who is 38 years old and uses a wheelchair, mentioned that she plans to save her settlement money with the hope that it might eventually increase her $113 monthly welfare benefit.


Santokhi had earlier discussed steering clear of what is referred to as the "oil curse" or "Dutch disease." This phenomenon affected various resource-abundant nations like Venezuela, Angola, and Algeria, which failed to convert their oil riches into economic prosperity.


Norway stood out by establishing a sovereign wealth fund.


The president stated that Suriname would adopt a "distinctive" strategy, fully recognizing that its oil reserves are expected to be depleted within approximately four decades.


He stated, ‘We will generate revenue from oil profits, fiscal incomes, and also from royalty payments.’

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Property of the nation
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In 2024, the international company TotalEnergies announced an investment of $10.5 billion in the offshore oil field located off the coast of GranMorgu in the Atlantic Ocean.


A provision in the Surinamese Constitution declares that "the country’s natural wealth and resources belong to the state and should be utilized to foster economic, social, and cultural advancement."


However, concerns persist that these advantages might not reach every citizen, particularly those residing in rural regions, Indigenous populations, and Maroons — the descendants of African slaves.


"Giovanna Montenegro, who directs the Latin American and Caribbean Studies Program at Binghamton University in New York State, expressed her curiosity about how funding and bureaucratic processes would be made available to Indigenous and Maroon communities,” she told AFP.

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Suriname on the Brink of a Windfall: New Oil Discovery Set to Flood Economy

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