Suriname Government "Will Share Benefits with Citizens"
Launch of Large-Scale Oil Field Development Project
Crude Oil Production to Begin Around 2028
The Surinamese government, which has embarked on a large-scale oil field development project, announced that it will share the development profits with its citizens.
The Suriname government, which has embarked on a large-scale oil field development project, announced that it will share the development profits with the public. Getty Images
According to a press release from the Surinamese presidential office on the 25th (local time), Chandrikapersad Santokhi, the President of Suriname, stated in a speech at the 49th Independence Day reception held that day, "All citizens of Suriname will receive $750 (approximately 1.05 million KRW) from future oil royalties," adding, "An annual interest rate of 7% will be set on the relevant shares, and we will create new financial products that allow sharing of future profits." President Santokhi further explained, "Our entrepreneurs and youth will have the opportunity to build the future of the homeland based on proper education and training," and described the policy as "consistent with the constitutional provision that defines natural resources as national property and uses them to promote economic, social, and cultural development."
Suriname, formerly a Dutch colony, along with neighboring Guyana, is attracting attention as a place rich in offshore crude oil reserves. Last month, AFP reported that French company TotalEnergies announced plans to proceed with an oil field development project off the coast of Suriname worth $10.5 billion (approximately 14.7 trillion KRW). According to the report, crude oil production is expected to begin around 2028.
President Santokhi previously told AFP in an interview, "We are well aware of the cases of 'Dutch Disease' in resource-rich countries such as Venezuela, Angola, and Algeria." Dutch Disease refers to the phenomenon where resource-rich countries experience a temporary boom due to exports but then fall into economic recession due to rising prices and currency values or hindered development in other sectors. The term originated from the difficulties faced by the Netherlands in the 1950s and 1960s after the discovery of large natural gas fields, which led to a decline in manufacturing competitiveness.
Meanwhile, according to World Bank statistics, Suriname currently has a population of 600,000, with one in five people living in poverty. Suriname was classified as an extremely poor country immediately after gaining independence from the Netherlands due to government economic policy failures. Since then, it has maintained a middle-income country level by developing related industries based on abundant mineral resources. However, in 2015, the mine producing bauxite, its largest export product, was permanently closed due to a drop in raw material prices, leading to an economic crisis where GDP per capita was halved. Domestically, it is known through the Netflix series of the same name starring Hwang Jung-min and Ha Jung-woo, which deals with a Korean drug lord.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
