APA Corporation (NASDAQ:APA) shares are trading higher after the company announced a Final Investment Decision (FID) for the first oil development in Block 58, located offshore Suriname.

In June 2024, APA, along with TotalEnergies SE (NYSE:TTE) and Staatsolie Maatschappij Suriname disclosed key advancements towards the FID for developing offshore Block 58.

TotalEnergies and APA operate Block 58, with each holding a 50% stake. Staatsolie, Suriname's national oil company, has the option to join the development project with up to a 20% interest once the FID is made.

Related: TotalEnergies Eyes $9B Oil Venture In Block 58 Offshore Suriname, Production To Begin In 2028

The total investment is estimated at $10.5 billion, with first oil expected in 2028.

The project, named GranMorgu, includes production from the Krabdagu and Sapakara oil discoveries and has confirmed gross estimated recoverable resources exceeding 750 million barrels of oil through appraisal drilling.

GranMorgu will utilize technology to minimize greenhouse gas emissions, featuring an all-electric FPSO configuration with zero routine flaring and complete reinjection of associated gas into reservoirs.

Alongside securing approval for the Phase-1 Central Area Field Development, the partnership has maintained the option for additional exploration in Block 58.

This will enable the companies to thoroughly investigate the substantial untapped potential of the block within the established trend, as well as explore untested areas.

Investors can gain exposure to APA via Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:OILT) and Octane All-Cap Value Energy ETF (NASDAQ:OCTA).

Price Action: APA shares are up 4.80% at $25.64 at the last check Tuesday.

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