The Government of Guyana has accepted an offer from a consortium of energy giants Qatar Energy, Total Energies and Petronas to explore for oil in an offshore concession called S-4.

This approval comes after Guyana offered 14 offshore concession areas last September, attracting offers from the consortium and ExxonMobil, which has until now remained the country's only oil producer.

This step represents a milestone in Guyana's journey towards diversifying its oil sources, enhancing its opportunities to discover more extractable resources, and increasing its oil production.

Guyana has not yet awarded any formal concession contracts, but it is in active negotiations with the consortium to determine the terms of the production-sharing agreement, which will determine profit shares between the government and companies. Current negotiations are focused on non-financial terms, while laws determine taxes and royalties.

Guyana expressed its willingness to change non-financial conditions to attract more investments in the oil sector, out of its belief in the importance of this sector in supporting its national economy.

In parallel, ExxonMobil is in talks with the government about its offer to explore for oil in another concession area known as S-8.
ExxonMobil and its partners are among the most active companies in the field of oil exploration in Guyana. It has succeeded in discovering more than 11 billion barrels of recoverable oil and gas resources since 2015.

Guyana currently produces about 650,000 barrels of oil per day, and hopes to significantly increase this production in the coming years through cooperation with leading global companies such as the Qatar Energy Consortium and Total Energies.

Acceptance of the consortium's offer is expected to significantly increase oil exploration activities in Guyana; Which could lead to new oil discoveries and increased oil production in the country.