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Oil and gas glossary: terms explained

Anyone dealing with the oil and gas sector, as a supplier, job seeker or business owner, soon hears abbreviations like FPSO, PSC, EOI and BOSIET. This page explains the key terms in plain language, with examples from Suriname. Every term has its own link, so you can point straight to it.

In short
  • Block, operator, PSC: the state, through Staatsolie, licenses areas to oil companies; the operator runs the work and awards the contracts.
  • FID and first oil: the large orders follow the investment decision; GranMorgu took it on 1 October 2024 and expects first oil in 2028.
  • EOI, RFP, tier: this is how purchasing works. Local companies usually supply large contractors as tier 2 or 3.
  • HSSE, BOSIET: safety is the entry ticket, for companies and for people who want to work offshore.
  • Royalty, cost oil, profit oil: this is how money reaches the state, and why the large amounts only come some years after first oil.
On this page (13)

Exploration and geology

Sedimentary basin
A large area where layers of rock have built up over millions of years, in which oil and gas can form. Suriname lies in the Guyana-Suriname Basin, the same basin as the large finds in Guyana. More: Oil blocks and concessions
Source rock
Rock rich in organic matter that formed oil or gas under pressure and heat.
Reservoir
Porous rock, usually sandstone, that holds oil or gas and from which it can be produced.
Seismic survey
A survey using sound waves that bounce off rock layers to image the subsurface in 2D or 3D before any drilling.
Prospect
A location in the subsurface where seismic suggests oil or gas may be present, but which has not yet been drilled.
Exploration well (wildcat)
The first well drilled into a prospect to find out whether oil or gas is present.
Discovery
A well that finds oil or gas. A discovery is not yet a producible field: that only becomes clear after appraisal. Petronas made several discoveries in Block 52, including the Sloanea gas field. More: Oil blocks and concessions
Dry hole
A well without commercial quantities of oil or gas. Shell's Araku Deep-1 well in Block 65 found no commercial quantities. More: Oil blocks and concessions
Reserves
The part of the oil or gas that can be produced economically with known technology at current prices. GranMorgu has more than 750 million barrels of recoverable reserves. More: GranMorgu project
Resources
A broader term than reserves: all the oil and gas estimated to be present, including what is not yet economic to produce.
Deepwater and shallow water
Offshore areas are classed by water depth. Deepwater starts at roughly a few hundred metres; GranMorgu is in deep water, Chevron's blocks closer to shore are in shallow water. More: Oil blocks and concessions
Onshore and offshore
Onshore means production on land, offshore means at sea. Staatsolie has produced onshore in Saramacca since 1982, including from the Tambaredjo field. More: Staatsolie
Heavy crude
Thick, viscous oil with a low API gravity. The onshore oil from Saramacca is heavy crude; GranMorgu's offshore oil is lighter.

Contracts and licensing

Block
A numbered area on land or at sea for which the state grants the right to explore for and produce oil and gas. GranMorgu is in Block 58. More: Oil blocks and concessions
Production sharing contract (PSC)
The contract between Staatsolie and an oil company. The company carries the risk and the costs, recovers them from production (cost oil) and shares the rest (profit oil) with the state. More: Oil and gas law
Petroleum Act 1990
The law that governs oil and gas in Suriname. All hydrocarbons belong to the state; Staatsolie signs the contracts. The revised act has applied since 1 January 2023. More: Oil and gas law
Operator
The partner that runs the work and awards contracts on behalf of all partners. TotalEnergies operates Block 58, Petronas Block 52. For suppliers the operator is usually the first customer. More: Become an oil and gas supplier
Partner (non-operator)
A company with a share in a block that pays and receives its share but does not run the work. APA Corporation is a partner in Block 58.
Working interest
The percentage a partner owns in a block. In GranMorgu: TotalEnergies 40%, APA 40%, Staatsolie 20%. More: GranMorgu project
State participation
Staatsolie's right to take a share in a development, usually up to 20%, and pay its part of the cost. More: Staatsolie
Farm-in and farm-out
In a farm-in a company buys into a block, often by paying part of the drilling costs; the seller does a farm-out.
Signature bonus
A fixed amount a company pays the state when signing a contract, whether or not anything is found later.
Bid round
A period in which the state offers blocks and companies bid at the same time.
Open Door Offering
Since November 2025 qualified companies can propose open offshore acreage to Staatsolie at any time. Others then get 90 days to submit a competing proposal. The window after the fifth proposal closes on 21 December 2026. More: Oil blocks and concessions
Work commitment
The seismic and wells a company commits to in a contract within a set period.
Relinquishment
Handing (part of) a block back to the state when the exploration period ends or nothing is found.
Joint operating agreement (JOA)
The agreement between the partners in a block on who pays, decides and does what.

Fiscal terms and revenue

Royalty
A percentage of production or revenue that the state receives before costs are deducted. The rate is set in the contract. More: Oil and gas law
Cost oil
The part of production the company uses to recover its investment and costs, usually with an annual cap. More: Oil and gas law
Profit oil
What is left after royalty and cost oil. It is split between the state and the company as set in the contract. More: Oil and gas law
Cost recovery
The mechanism by which investments are paid back from production first. That is why the large revenues for the state usually come only some years after first oil. More: Oil money and business
Ring-fencing
A rule that costs from one block or project may not be offset against income from another.
Government take
The state's total share of the profit through royalty, profit oil, taxes and Staatsolie's own participation. More: Oil money and business
Break-even oil price
The oil price at which a project just breaks even. The lower the break-even, the better a project withstands low oil prices. More: GranMorgu project
Savings and Stabilisation Fund Suriname (SSFS)
The fund meant to receive oil and mining revenue, save it and absorb price swings. The law dates from 2017; the fund is not yet operational and the law is being amended again. More: Oil money and business
Royalties for Everyone (RVI)
A 2025 programme (S.B. 2025 no. 58) to give citizens a share of future oil revenue through an account per person. More: Oil money and business
Dutch disease
When large resource revenues strengthen the currency and push up wages, making other sectors such as agriculture and tourism less competitive. More: Oil money and business

Projects and decisions

Appraisal
Extra wells and studies after a discovery to establish how large the field is and whether production pays.
Declaration of commerciality
The formal decision that a discovery is commercial. For the Sloanea gas field in Block 52 this happened in November 2025. More: Oil blocks and concessions
Field development plan (FDP)
The plan for how a field will be developed: wells, facilities, costs and schedule. Staatsolie and the government must approve it.
Concept select
The phase in which the partners choose how to develop a field, for example with an FPSO or an FLNG.
FEED (front-end engineering design)
The detailed engineering design before the investment decision. The large contracts are tendered on this basis.
Final investment decision (FID)
The moment the partners finally decide to build. For GranMorgu this was 1 October 2024. After FID the large orders follow and demand for local services begins. More: GranMorgu project
EPC and EPCI contract
A contract in which one contractor delivers engineering, procurement, construction and sometimes installation together.
First oil
The day a project first produces oil. For GranMorgu expected in 2028; the government says mid-2028. More: GranMorgu project
Plateau production
The period during which a field produces at or near its maximum capacity, before output declines.
Hook-up and commissioning
Connecting the facility to the wells and pipelines and testing it before production starts.
Decommissioning
Dismantling facilities and plugging wells at the end of production.
Environmental and social impact assessment (ESIA)
The study of a project's effects on nature and people, with mitigation measures. Required for the environmental permit from the NMA. More: Oil and gas law

Offshore installations

FPSO
Floating production, storage and offloading: a vessel that processes, stores and offloads oil to tankers. GranMorgu gets an all-electric FPSO from SBM Offshore for 220,000 barrels a day. More: GranMorgu project
FLNG
Floating liquefied natural gas: a floating facility that cools natural gas into liquid LNG. Petronas is studying an FLNG for the gas from Block 52. More: Oil blocks and concessions
LNG
Liquefied natural gas: natural gas cooled to about minus 160 degrees so it can be shipped.
SURF
Subsea umbilicals, risers and flowlines: all pipes and cables on the seabed between the wells and the FPSO. Saipem lays GranMorgu's production and injection lines. More: GranMorgu project
Subsea production system (SPS)
The equipment on the seabed, such as well trees and manifolds. TechnipFMC supplies GranMorgu's subsea system. More: GranMorgu project
Subsea tree (christmas tree)
A set of valves on top of a well on the seabed that controls the flow of oil or gas.
Manifold
A seabed structure that gathers the flow from several wells.
Riser
A pipe that carries oil or gas from the seabed up to the FPSO.
Umbilical
A bundle of cables and hoses that carries power, signals and chemicals from the FPSO to the subsea equipment.
Drillship
A ship with a drilling derrick for wells in deep water.
Semi-submersible rig
A floating rig on pontoons that stays stable in deep water and rough seas.
Jack-up rig
A rig with legs that stand on the seabed, used in shallow water.
Injection well
A well that pumps water or gas back into the reservoir to maintain pressure. GranMorgu reinjects gas instead of flaring it. More: GranMorgu project
Flaring
Burning off gas released during oil production. GranMorgu's FPSO is designed without routine flaring.
Shore base
The port and storage site on land from which vessels carry equipment, fuel and food to the offshore facilities. More: GranMorgu project
Platform supply vessel (PSV)
A vessel that carries goods, water and fuel to rigs and the FPSO.
Shuttle tanker
A tanker that collects oil from the FPSO and takes it to the buyer.

Production, prices and units

Barrel (bbl)
The standard unit for oil: 159 litres.
Barrels per day (bpd)
Daily production. Staatsolie produced an average of 17,400 barrels a day onshore in 2025; GranMorgu can handle 220,000 barrels a day. More: Staatsolie
Barrel of oil equivalent (boe)
A unit for adding gas to oil, based on energy content.
mmscfd
Million standard cubic feet of gas per day, the usual unit for gas production.
Tcf
Trillion cubic feet: the unit for large gas volumes.
API gravity
A measure of how light or heavy oil is. The higher the number, the lighter the oil and usually the more it is worth.
Brent
The international price benchmark for North Sea crude. Suriname's offshore oil will be sold against Brent. More: Fuel prices today
WTI
West Texas Intermediate, the US price benchmark for crude oil. More: Fuel prices today
Refinery
A plant that turns crude oil into fuels such as diesel and gasoline. Staatsolie has a refinery at Tout Lui Faut, Wanica. More: Staatsolie
Fuel price cap
A maximum pump price held by the government, with the state covering the gap to the market price. Suriname has had a cap since 17 March 2026. More: Fuel prices today
Upstream, midstream, downstream
Upstream is exploration and production, midstream is transport and storage, downstream is refining and selling to customers.

Procurement and local content

Local content
The share of work, purchasing and staff filled in the country itself by local companies and people. Suriname has no Local Content Act yet; a bill is to go to parliament in 2027. More: Become an oil and gas supplier
SSRP
Suriname Supplier Registration Portal: the free register run by the Staatsolie Hydrocarbon Institute, where operators and their contractors look for local suppliers. More: Become an oil and gas supplier
SAP Ariba
Staatsolie's procurement system. Only needed if you want to supply Staatsolie itself. More: Become an oil and gas supplier
Expression of interest (EOI)
A first call in which companies show they are qualified. Not a quote: a shortlist follows. More: Become an oil and gas supplier
Prequalification
The check of whether a supplier meets requirements on safety, quality, finance and experience before it may bid. More: Become an oil and gas supplier
Request for quotation (RFQ)
A request for a price for clearly defined goods or services.
Request for proposal (RFP)
A fuller request in which you describe approach, people and schedule as well as price. Often follows an EOI. More: Become an oil and gas supplier
Invitation to tender (ITT)
A formal invitation to bid on a contract, with fixed terms and a closing time.
Tier 1, 2 and 3
The layers in the chain. Tier 1 contracts directly with the operator (such as SBM Offshore or Halliburton); tiers 2 and 3 supply those contractors. Most local opportunities are in tiers 2 and 3. More: Become an oil and gas supplier
Main contractor
A large company awarded a work package by the operator that hires its own subcontractors.
Joint venture (JV)
A partnership between a local and a foreign company, often in a joint NV, to carry out a contract together. More: Become an oil and gas supplier
Blue Wave programme
Staatsolie's supplier development programme: six months of training in HSSE, quality, finance and more. More: Become an oil and gas supplier
Framework agreement and call-off
A multi-year contract under which the client orders services job by job, without tendering each time.

Safety (HSSE) and certificates

HSSE
Health, safety, security and environment. Without a demonstrable HSSE policy you will not pass prequalification. More: Become an oil and gas supplier
HSEQ
HSSE plus quality. Since February 2025 a private member's bill on supervising local content and HSEQ has been before parliament. More: Oil and gas law
Permit to work (PTW)
Written permission for hazardous work, such as hot work or confined space entry, listing the precautions.
Job safety analysis (JSA)
A short analysis per task of the hazards and controls, before work starts.
Stop work authority
Every worker's right and duty to stop work that is unsafe.
Lost time injury (LTI)
An injury that keeps someone off work for at least one working day. Operators ask for your LTI figures.
TRIR
Total recordable incident rate: the number of recordable incidents per 200,000 hours worked. A common measure of safety performance.
BOSIET and T-BOSIET
Basic Offshore Safety Induction and Emergency Training: the basic course required to work offshore, covering helicopter evacuation, fire and sea survival. T-BOSIET is the tropical version. More: Oil and gas jobs
HUET
Helicopter Underwater Escape Training: practising escape from a capsized helicopter. Part of BOSIET. More: Oil and gas jobs
OPITO
The international body that sets offshore safety courses such as BOSIET and approves training centres. More: Oil and gas jobs
MIST
Minimum Industry Safety Training: basic safety training for new offshore workers. More: Oil and gas jobs
Offshore medical
A medical examination showing you are fit for offshore work. Without a valid medical you may not go offshore. More: Oil and gas jobs
STCW
The international convention on training and certification of seafarers. Required for crew on supply vessels. More: Oil and gas jobs
ISO 9001, 14001, 45001
Standards for quality, environment and occupational health and safety. Each call states whether certification is required. More: Become an oil and gas supplier
Oil spill response plan
The plan for responding to oil spills at sea. The government is updating the national plan for offshore production. More: Oil and gas law

Jobs and rotations

Rotation
The offshore work schedule: a number of weeks at sea followed by the same time off, for example 14 days on and 14 off, or 28 on and 28 off. More: Oil and gas jobs
Hitch
One period at sea within a rotation. More: Oil and gas jobs
Crew change
Swapping shifts, usually by helicopter or vessel from shore.
POB (persons on board)
The number of people on a facility at one time. Sets how many beds, meals and lifesaving appliances are needed.
Roustabout
A general deck hand on a rig or FPSO: loading, unloading, cleaning, assisting. Often an entry-level role. More: Oil and gas jobs
Roughneck
A worker on the drill floor who helps with drilling and handling drill pipe. More: Oil and gas jobs
Toolpusher
The supervisor of the drilling crew on a rig.
OIM
Offshore installation manager: the person in overall charge of an offshore facility.
E&I technician
Electrical and instrumentation technician: maintains electrical systems and measuring and control equipment. More: Oil and gas jobs
NDT (non-destructive testing)
Inspecting welds and materials without damaging them, for example with ultrasound or radiography. Requires certified inspectors. More: Oil and gas jobs
Rigger and banksman
Specialists in slinging loads and guiding crane lifts. More: Oil and gas jobs
EnergyJobs.sr
A job platform for oil, gas and energy in Suriname, launched by TotalEnergies on 27 November 2025. More: Oil and gas jobs

Institutions and players in Suriname

Staatsolie
Staatsolie Maatschappij Suriname N.V., the state oil company since 1980. Manages the oil and gas acreage for the state, signs the contracts, produces onshore and runs its own refinery. More: Staatsolie
Staatsolie Hydrocarbon Institute (SHI)
The Staatsolie unit that manages the offshore blocks, works with the operators and runs the SSRP supplier register. More: Staatsolie
Paradise Oil Company
A Staatsolie subsidiary that holds Staatsolie's interests in offshore blocks, such as Blocks 9 and 10 with Petronas, Chevron and QatarEnergy. More: Oil blocks and concessions
GOw2
Staatsolie's fuel station network. Publishes its pump prices daily. More: Fuel prices today
Ministry of Oil, Gas and Environment (OGM)
The ministry responsible since 2025 for oil and gas policy, legislation and environmental policy. More: Oil and gas law
National Environmental Authority (NMA)
The body that grants and enforces environmental permits under the Environmental Framework Act. Successor to NIMOS. More: Oil and gas law
Maritime Authority Suriname (MAS)
Supervises shipping, ports and safety at sea, including vessels that serve the offshore facilities. More: Oil and gas law
Local Content Board
A board set up in November 2025 that is drafting the Local Content Act and advising on a Local Content Authority. More: Become an oil and gas supplier
EITI Suriname
Suriname's branch of the Extractive Industries Transparency Initiative. Publishes what oil and mining companies pay and what the state receives. More: Oil and gas law
National Assembly (DNA)
Suriname's parliament. Votes on laws such as the Local Content Act and amendments to the SSFS law. More: Oil and gas law

Read further

Sources

Checked on 26 October 2026. General explanation, not legal or financial advice.

Frequently asked questions

What is an FPSO?

A floating production vessel that processes, stores and offloads oil to tankers. GranMorgu in Block 58 gets an all-electric FPSO from SBM Offshore with a capacity of 220,000 barrels a day.

What is a production sharing contract (PSC)?

The contract between Staatsolie and an oil company. The company carries the risk and costs, recovers them from production (cost oil) and shares the rest (profit oil) with the state, on top of royalty and taxes.

What does FID mean?

Final investment decision: the definitive decision to build a project. For GranMorgu it was taken on 1 October 2024; the large contracts followed.

What is the difference between an EOI and an RFP?

In an EOI you show that your company is qualified; it is not a quote. Companies on the shortlist receive an RFP and only then give price, approach and schedule.

What is BOSIET?

Basic Offshore Safety Induction and Emergency Training, the basic course you need to work offshore. It covers helicopter evacuation (HUET), firefighting and sea survival; T-BOSIET is the tropical version.

What do tier 1, 2 and 3 mean?

The layers in the supply chain. Tier 1 contracts directly with the operator; tiers 2 and 3 supply those contractors. Most opportunities for Surinamese companies are in tiers 2 and 3.