Guyana accepts production sharing agreements for five offshore oil blocks

TotalEnergies (NYSE:TTE), QatarEnergy and several other groups have reached agreements with Guyana over terms of production sharing deals to explore five oil and gas offshore blocks, Reuters reported late Wednesday.

A tender launched in 2022 for areas in shallow and deep waters led to offers for eight blocks, part of the government’s effort to diversify its energy industry dominated by the Exxon-led (XOM) consortium.

The Exxon (XOM) group, which also is in talks to explore offshore area S8 that is part of the tender, is interested in assessing carbon capture and storage opportunities within the block, the ministry said, according to the report.

A government official said previously that Guyana’s cabinet had approved a bid by TotalEnergies (TTE), QatarEnergy and Petronas for exploring shallow water block S4 and negotiations over non-fiscal terms had begun.