Suriname’s state-owned oil company, Staatsolie, signed an agreement with Saipem S.p.A for the engineering, procurement and construction of its new oil refinery at Tout Lui Faut, 20 kilometers south of Paramaribo. As per the USD 424 million lump sum contract, Saipem will carry out the engineering, procurement of material and equipment and construction of the modules abroad and then ship them to Suriname. Staatsolie will manage the remaining construction in Suriname with its own management, under the supervision of Saipem. Construction will commence in the second quarter of 2012, while production is scheduled to begin in the middle of 2014. Upon completion of the refinery expansion project, the company’s refining capacity will increase from 7,000 bpd to 15,000 bpd. Staatsolie will produce high quality end products, including premium diesel and premium gasoline for the local market, which will considerably lower Suriname’s oil imports. The company currently manages three onshore oil fields in Suriname, while offshore explorations are continuing. Output from the three oil fields is transported via massive underground pipes to the refineries located at Tout Lui Faut. The company’s crude oil production totaled 16,000 barrels per day, while its annual production from 2007 to 2009 was 5.44 million barrels, 5.90 million barrels and 5.86 million barrels, respectively. In addition to meeting domestic needs and consumption, Suriname’s oil and gas products are also exported to numerous countries in the Caribbean including Trinidad & Tobago, Curacao, St Lucia, Barbados and Panama.