French oil giant, TotalEnergies, along with its partners Qatar Energy and Petronas, will expend approximately US$300 million over the next 12 to 18 months in search of oil deposits in their new block—S4 offshore Guyana.
The company recently received its exploration license and petroleum agreement from the government after it participated in the country’s first competitive bid round for oil blocks in 2022.
The announcement of the investment was made during the November 11 opening of the Berbice Development Summit by President Dr Irfaan Ali. The head of state hailed the signing of the Production Sharing Agreement as the start of another significant chapter for Guyana’s petroleum sector. He also revealed that the first well will be drilled in the third quarter of 2026.
“I want to congratulate Guyana on the signing of the S4 block, and that S4 block comes with a signing bonus of US$15 million. The partners of that signing are Petrobras, TotalEnergies and Qatar Energy. That says to you the magnitude, the depth, and the diversification of the investors that are coming,” President Ali stated.
He further underscored the global significance of such investment commitments, stating, “It is [crucial] for us to understand why these things are important in today’s world. They’re important because it is not easy to raise capital for energy projects as it was 20 years ago. And it is a different risk level, different investment profile.”
“So, for us to have these major players signing and taking part in the development of the energy sector is an enormous accomplishment.”
According to the Ministry of Natural Resources, the Government of Guyana signed a Production Sharing Agreement (PSA) for the shallow-water Block S4 with a consortium comprising:
- TotalEnergies – 40% (Operator)
- QatarEnergy – 35%
- PETRONAS – 25%
The block was awarded under Guyana’s 2022 Licensing Round, marking the country’s first-ever competitive bid round. Block S4 spans 1,788 square kilometres, located 50 to 100 kilometres offshore in water depths ranging from 30 to 100 metres.
The ministry noted that exploration activities will be carried out in line with Guyana’s regulatory requirements and international standards for environmental protection and resource management.
It also reaffirmed the government’s commitment to ensuring that all petroleum operations are undertaken with the highest levels of transparency, environmental stewardship, and local participation.