The consortium is set to immediately commence an ambitious exploration program, underscoring the block's strategic fit within the companies' global quest for material, low-cost resources.
TotalEnergies has officially cemented its expanded footprint in the world-renowned Guyana-Suriname Basin, securing the operatorship of the shallow-water Block S4 through a newly signed production sharing contract (PSC). The agreement, formalized in Georgetown with Guyana’s Ministry of National Resources, represented by His Excellency Vickram Bharrat, follows the block’s award during the competitive Guyana 2022 Licensing Round.
The consortium comprises TotalEnergies as the operator with a 40% participating interest, working alongside its strategic global partners, QatarEnergy (35%) and Petronas (25%). For the Malaysian state-owned oil and gas company, Petronas, this marks its first significant venture into the rapidly emerging Guyanese exploration landscape, further expanding its presence in the Americas region.
Block S4, which covers an area of approximately 1,788 square kilometers, is strategically situated in shallow waters, located about 50 to 100 kilometers from the Guyanese coastline.
The initial work program for the block is set to be rigorous, focusing on the acquisition of a 2,000 square kilometer 3D seismic survey. This extensive data acquisition program is a critical first step in evaluating the block's hydrocarbon potential and identifying viable drilling prospects. Daniel Larranaga, Vice President of Exploration for the Americas at TotalEnergies, emphasized the urgency of the venture, stating the company's intent to "go fast" and explore the basin as soon as possible, targeting the latter half of 2026 to commence seismic acquisition—a timeframe described as "extremely fast for industry standards."
In a notable aspect of the deal, the consortium agreed to a US$15 million signing bonus, which the Guyanese government has confirmed will be deposited into the nation's Natural Resource Fund. This Block S4 agreement is also reported to be the first PSC signed under Guyana’s revised petroleum fiscal regime, which introduces more favorable terms for the country, including a 10% royalty, a 10% corporate tax, and a cost recovery cap set at 65% monthly.
Nicola Mavilla, Senior Vice President Exploration of TotalEnergies, highlighted the strategic rationale behind the new venture. “TotalEnergies is delighted to bring its expertise as an operator to Guyana, in a shallow-water offshore block within this prolific basin, and to further strengthen its global strategic partnerships with QatarEnergy and Petronas,” Mavilla stated. He added that the block fits the company's strategy of exploring for "material, low-cost, and low-emission resources," indicating a focus on capital efficiency and environmental considerations.
