*

Gran Morgu project led by TotalEnergies, aims for first

oil in

2028

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Staatsolie's participation in Gran Morgu requires $2.4 bln

*

State-owned company's revenue expected to triple by 2029

to

$1.77 bln

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Staatsolie intends to participate in Petronas' Block 52, a

gas-focused development

By Kemol King and Marianna Parraga

GEORGETOWN, Feb 20 (Reuters) - Suriname's Staatsolie

needs to secure an unprecedented $1.5 billion in bank financing

this year to ensure it can participate in the country's Gran

Morgu energy project, the head of the state-owned company told

Reuters.

The project, led by TotalEnergies, is Suriname's

first major offshore project. The country has discovered

reserves that may allow it to compete with neighbor Guyana as a

prominent offshore crude- and gas-producing country once it sees

the first oil in 2028.

Staatsolie wants to partner with TotalEnergies and APA Corp ( APA )

in the project, to be developed at Block 58, which

received a positive final investment decision in October.

"We are talking to big banks in the world to finance,"

Staatsolie's managing director, Annand Jagesar, told Reuters in

an interview on the sidelines of an industry conference in

Guyana. "They're very eager to do it."

He did not disclose the potential financiers.

The oil and gas development is expected to cost about $12.2

billion in real terms. Staatsolie's share in Gran Morgu would

require $2.4 billion.

The project's development, which Jagesar said is 10%

complete after a set of initial contracts worth up to $7 billion

were secured, will need major investments from all partners.

Staatsolie already paid $175 million of its own cash, with

another payment deadline coming up this year. The company has

also issued bonds to cover a portion of the capital requirement.

For Staatsolie, this participation represents a first step

towards the challenge of doubling the size of the company.

"To participate and to learn from the big boys, that fits

perfectly in our strategy," Jagesar told Reuters.

RAPID GROWTH

The company sees its revenue almost tripling by 2029 to

$1.77 billion, according to a company prospectus issued when it

launched its most recent bonds.

The biggest challenge for the company is raising cash soon

enough to participate in big-ticket offshore projects.

The state company may need to raise even more money in

coming years if it decides to participate in a natural gas

project to be operated by Malaysia's Petronas, which is expected

to have a final investment decision next year.

Jagesar said it is Staatsolie's intention to participate in

Petronas' Block 52, which could be the South American country's

first development completely focused on natural gas.

Development of Block 52 could cost some $10 billion, with a

potential 2031 start date, according to consultancy Wood

Mackenzie. Staatsolie would have to raise another $2 billion to

secure its 20% stake.

However, the company's participation in Block 58 could earn

it about $700 million a year at peak production, Wood Mackenzie

added.

"The cash flow collected will alleviate many of the

financing needs," Wood Mackenzie's Upstream Research analyst

Luiz Hayum told Reuters.

The timeline could play in Staatsolie's favour, he said, as

most of the Block 52 expenses would be done during the 2028-2031

period, after production begins at Block 58.