Guyana signs $15M oil exploration deal with TotalEnergies, QatarEnergy and Petronas

The Government of Guyana has signed a five-year Production Sharing Agreement (PSA) with a consortium comprising TotalEnergies, QatarEnergy and Petronas for exploration of shallow-water Block S4, marking a new chapter in the country’s growing petroleum sector.

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Block S4, located 50 to 100 kilometers (30 to 60 miles) off Guyana’s coast, spans about 1,788 square kilometers in water depths ranging from 30 to 100 meters. The consortium—led by TotalEnergies with a 40 percent operating stake, alongside QatarEnergy (35 percent) and Petronas (25 percent)—will pay a US$15 million signing bonus to the government.

The agreement, signed on Tuesday, is the first finalized following Guyana’s inaugural licensing round in 2022, which offered 14 offshore blocks for exploration and development. Eight of those blocks were awarded to local and foreign producers, including Exxon, Delcorp, Watad Energy, Arabian Drillers, Liberty Petroleum, Cybele Energy, International Group Investment, Montego Energy, and Sispro.

Minister of Natural Resources Vickram Bharrat said the signing reflects Guyana’s efforts to diversify its energy industry, which has been dominated by ExxonMobil-led operations since the country became an oil producer in 2019.

“Every investor that comes to our shore and signs an agreement with us, they are of the understanding that this partnership will have to be a win-win partnership,” Bharrat said during the ceremony. He added that the inclusion of new players demonstrates continued confidence in Guyana’s energy sector and regulatory framework.

“We are pleased to welcome QatarEnergy, TotalEnergies and Petronas as new partners in Guyana’s petroleum sector,” he said. “This investment demonstrates continued international confidence in Guyana’s transparent and robust licensing framework, and it reflects our government’s commitment to ensuring that the development of our natural resources is done sustainably and for the benefit of all Guyanese.”

Representing TotalEnergies, Vice President of Exploration for the Americas Daniel Larrañaga said the company is eager to move forward quickly with exploration activities. “We want to go fast,” he said. “We want to explore this basin as soon as we can.”

According to the Ministry of Natural Resources, exploration activities under the new PSA will adhere to Guyana’s regulatory requirements and international best practices for environmental protection and resource management. The ministry also reiterated the government’s commitment to ensuring that all petroleum operations are conducted “with the highest levels of environmental stewardship, transparency, and local participation.”

Bharrat added that Guyana expects to sign additional agreements this year to advance exploration in at least two more offshore blocks awarded during the same tender. Some negotiations—including those involving signing bonuses and work programs—are still ongoing.

The ministry said it looks forward to “collaborating closely with the consortium as Guyana continues to strengthen its position as a responsible and emerging energy producer.”