BY: ANTONIO DEY | HGPTV NIGHTLY NEWS
TotalEnergies has marked a strong return to Guyana’s oil and gas frontier after securing Block S4—
a shallow-water concession off the country’s coast—under the 2022 Licensing Round.
Now, the French oil major says it is fully committed to working with local contractors in accordance
with Guyana’s Local Content Act.
Speaking to reporters moments after signing the Petroleum Exploration Licence and Production
Sharing Agreement at the Pegasus Suites and Corporate Centre, TotalEnergies Vice President
Daniel Larranaga reaffirmed the company’s alignment with the country’s local content priorities.
“THE LOCAL CONTENT WILL BE THERE. WE WILL WORK WITH LOCAL CONTRACTORS IN THE EXPLORATION PHASE… IT IS NOT VERY LABOUR INTENSIVE, SO THERE WOULD NOT BE A HUGE GENERATION OF JOBS IN THIS EARLY STAGE.”
— Daniel Larranaga, VP TotalEnergies
TotalEnergies leads the consortium with a 40% stake, partnered by QatarEnergy (35%) and
PETRONAS (25%). Block S4 covers 1,788 square kilometres in shallow waters between
50–100 km offshore.
The company plans to begin seismic acquisition in the second half of 2026, marking the first major
activity under Guyana’s new and revised Production Sharing Agreement (PSA), which offers
stronger fiscal benefits for the country.
Despite tougher terms than older contracts such as Stabroek, Larranaga said TotalEnergies is
comfortable with the conditions:
“EVEN THOUGH THE TERMS… ARE A LITTLE BIT STRINGENT COMPARED TO THE FIRST ONE, THEY ARE STILL FAIR AND I BELIEVE IT IS A VERY GOOD OUTCOME.”
Under the new PSA, the fiscal terms include:
- 50/50 profit oil split
- 10% royalty
- 10% corporate tax
- 65% cost recovery cap
With several global energy giants now involved in Guyana’s shallow- and deep-water blocks, the
government says it expects the sector to deliver more opportunities for Guyanese workers,
businesses, and service providers.
