TotalEnergies, QatarEnergy, and Petronas have signed a five-year agreement with the Government of Guyana to begin exploration on a shallow-water offshore block. The deal was confirmed by authorities and company officials, following ongoing efforts by Guyana to diversify an energy sector dominated by an ExxonMobil-led consortium since the country became an oil producer in 2019.
According to Zawya, the production-sharing agreement covers Block S4, located 50–100 km off Guyana’s coast. It is the first contract awarded after the government’s 2023 tender round, which made eight of 14 offshore blocks available to local and foreign producers for exploration and development. Guyana’s Energy Minister, Vickram Bharrat, stated that the consortium will pay a $15 million entrance bonus under the agreement.
Bharrat noted that investors participating in Guyana’s offshore sector are expected to engage on a mutually beneficial basis. TotalEnergies will operate Block S4 with a 40% interest, while QatarEnergy and Petronas hold the remaining shares. Daniel Larrañaga, TotalEnergies’ Vice President of Exploration for the Americas, said the group intends to move quickly in assessing the basin.
Other consortia—including Exxon, Delcorp, Watad Energy, Arabian Drillers, Liberty Petroleum, Cybele Energy, International Group Investment, Montego Energy, and Sispro—secured blocks in the same tender. Bharrat added that at least two additional agreements are expected this year, with negotiations ongoing on work programmes and bonus terms.
Earlier in the year, the government cancelled the exploration licence held by Frontera Energy and its affiliate, CGX Energy, for the Corentyne block, citing their failure to meet extension requirements despite the discovery of reserves.
