Gov’t signs exploration pact with TotalEnergies, QatarEnergy, Petronas
The petroleum exploration licence and petroleum agreement for the shallow offshore Block 4 was this morning signed between the Government of Guyana and a consortium of TotalEnergies of France, QatarEnergy, of Qatar and Petronas of Malaysia. The inking of the agreement took place at the Pegasus Corporate Suites, Georgetown.
It is the first major exploration deal signed by the PPP/C government and had been pending for some time.
Cabinet in 2024 had given the green light to proceed to a contract with this consortium under a new Production Sharing Agreement with much better terms for Guyana.
The 2022 Licensing Round, Guyana’s first-ever auction, was initially announced in December 2020 by President Irfaan Ali. After several extensions and updates to the fiscal framework, the auction concluded with six bidders submitting 14 offers for eight of the 14 oil blocks offshore Guyana.
The government had said that its new Production Sharing Agreement (PSA) for companies in the 2022 Licensing Round was far superior to the 2016 PSA deal that ExxonMobil currently has. The royalty rate will be 10%, up from 2%, the cost recovery ceiling has been reduced to 65% and a 10% corporate tax has been included. Profit share will remain 50% each.
There is to be a US$10 million signing bonus for the shallow water block.
The Government of Guyana today issued the following statement:
GoG welcomes QatarEnergy’s participation in Block S4
The Government of Guyana, through the Ministry of Natural Resources, is pleased to announce the signing of a Production Sharing Agreement (PSA) for shallow-water Block S4 offshore Guyana with a consortium comprising QatarEnergy (35%), TotalEnergies (40%, operator), and PETRONAS (25%). The award was made under the 2022 Guyana Licensing Round, the country’s inaugural bid round, marking another major step in the country’s efforts to responsibly develop its hydrocarbon resources.
The agreement reflects continued confidence in Guyana’s petroleum sector and underscores the country’s attractiveness as a global investment destination for major international energy companies.
Minister of Natural Resources, Hon. Vickram Bharrat, M.P., welcomed the signing, stating, “We are pleased to welcome QatarEnergy, TotalEnergies and Petronas as new partners in Guyana’s petroleum sector. 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.”
Block S4 spans an area of approximately 1,788 square kilometres, located 50 to 100 kilometres off Guyana’s coast in water depths ranging between 30 and 100 metres. Exploration activities will be conducted in keeping with Guyana’s regulatory requirements and international best practices for environmental protection and resource management.
The Ministry of Natural Resources reiterates the government’s commitment to ensuring that all petroleum operations are conducted with the highest levels of environmental stewardship, transparency, and local participation. The ministry looks forward to collaborating closely with the consortium as Guyana continues to strengthen its position as a responsible and emerging energy producer.
