Oil Daily | Suriname Elections Impact Oil Policy; Iraq's $110B Energy Deals Face Legal Challenges

【Oil-Producing Countries Dynamics】

Suriname is holding presidential elections to decide who will oversee its energy and oil policy for five years. President Chan Santokhi seeks re-election, contending against Jennifer Geerlings-Simons. Both favor more offshore drilling and attracting international firms for oil projects, inspired by Guyana's oil boom and major projects like GranMorgu.

Iraq's federal government insists deals with U.S. firms and the Kurdistan Regional Government must be approved by Baghdad, citing constitutional violations. The KRG formalized substantial energy agreements valued at $110 billion, raising legal questions amid disputes over oil control. Iraq's Oil Ministry highlights cooperation conditions through federal authorities.

【Latest Oil Policies】

U.S. President Donald Trump criticized the UK's energy policy, urging a shift from wind energy to North Sea drilling. Trump posted on Truth Social, emphasizing the need to reduce energy costs by incentivizing drilling and altering the tax system. His comments follow Apache's withdrawal due to tax issues.

【Industry News】

Top U.S. energy officials will host an event on June 2 with South Korea, Japan, and Taiwan to promote the $44-billion Alaska LNG project. The U.S. seeks Asian investors to advance the project, aiming to export LNG to allies, though investment deals may not materialize as senior officials' participation is uncertain.

【Company News】

TotalEnergies is developing GranMorgu, a $10.5-billion oil project offshore Suriname, expected to start in 2028. The project involves a 220,000 barrels per day FPSO unit and could boost Suriname’s GDP by 55%. Suriname’s oil reserves aren't as vast as Guyana’s but can increase production rapidly, according to the IMF.

SSE and Orsted, major UK energy firms, are scaling back renewable investments due to changing macroeconomic conditions. SSE is reducing spending by $2 billion in its five-year plan, while Orsted halted Hornsea 4 project development due to supply chain challenges and market risks.

【Others】

Taiwan’s CPC Corporation signed a letter of intent to invest in Alaska LNG, enhancing its gas supply and energy security. Despite commitments, Taiwan faced a now-halted 32% tariff, with Japan and South Korea hesitating on investments despite courting efforts by Alaska and the Trump Administration.